Company Settings - Holidays Act (NZ)

Administration | Modify Company Settings command | Payroll | Processing | Holidays Act tab

Summary

New Zealand legislation dictates that you must be able to calculate the following three payment rates:

Average Earnings (52-week rule)
Ordinary Pay (4-week rule)
Average Daily Pay (52-week rule).

These payments are calculated using a series of User-Defined Accumulators (UDAs). The Holidays Act tab contains the default UDAs that are generated when you run the Leave Defaults command.

You can edit these fields, but you should change these settings only when you are set up a new database. Any changes that you make to these fields in an existing database will affect how your employee's leave payments are calculated.

Average Daily Pay

If the payment rate for sick leave, public holiday leave, alternative leave or bereavement leave cannot be calculated from the employee's Relevant Daily Pay (RDP), then you can use an average rate. Previously, this rate was calculated from the employee's gross earnings in the previous 4 weeks divided by their hours or days worked. From 01/04/2011, you have to use the employee's Average Daily Pay (ADP), which is based on the employee's gross earnings in the previous 52 weeks.

Fields

Ordinary Pay 4 UDA:

PayGlobal uses this field to calculate the 'gross earnings' of the ordinary pay calculation for an employee in one pay period.

Ordinary Pay 4 (hours) UDA:

PayGlobal uses this field to calculate the 'total hours paid' of the ordinary pay calculation for an employee in one pay period.

Ordinary Pay 4 (days) UDA:

PayGlobal uses this field to calculate the 'total days worked' of the ordinary pay calculation for an employee in one pay period.

Average Earnings 52 UDA:

PayGlobal uses this field to calculate the 'gross earnings' of the average earnings calculation for an employee in one pay period.

Average Earnings 52 (hours) UDA:

PayGlobal uses this field to calculate the 'total hours paid' of the average earnings calculation for an employee in one pay period.

Average Earnings 52 (days) UDA:

PayGlobal uses this field to calculate the 'total days worked' of the average earnings calculation for an employee in one pay period.

Note: Due to legislative changes that took effect from 01/04/2011, the following fields labels were changed from Relevant Daily Pay to Average Daily Pay.

Average Daily Pay UDA:

PayGlobal uses this field to calculate the 'gross earnings' of the average daily pay calculation for an employee in one pay period. Formerly Relevant Daily Pay UDA.

Average Daily Pay (hours) UDA:

PayGlobal uses this field to calculate the 'total hours paid' of the average daily pay calculation for an employee in one pay period. Formerly Relevant Daily Pay (hours) UDA.

Average Daily Pay (days) UDA:

PayGlobal uses this field to calculate the 'total days worked' of the average daily pay calculation for an employee in one pay period. Formerly Relevant Daily Pay (days) UDA.