Leave calculation type based on Ordinary Earnings – A relative number of hours the employee accrues each pay period, based on an employee’s ordinary earnings for the pay run. Payroo will calculate the leave accrual accordingly on a pro-rata basis.
If you choose based on ordinary earnings and if the employee's work hours are changed inside the pay run the leaves accrual rate changes on pro-rata basis.
Below is the description of how to create leaves with a calculation basis as "Based on Ordinary earnings" and how it works
Step 1 - Click on "Settings"
Step 2 - Click on "Payroll"
Step 3 - Click on "Leaves"
Step 4 - Click on "Add New"
Step 5 - Add all the required details (Leave Name, Leave Type, ATO reporting Categories, Calculation Basis, Hours Accrued Annually)
Step 6 - Click on Save
Step 7 - Once the leave category is saved, assign the leave to the employee
Step 8 - Create a pay run
Step 9 - Verify the leave accrued rate
NOTE - Here, if the number of working hours is changed the leave accrual will be changed on a pro-rata basis.
Step 10 - Publish and file the pay run
If you have any questions or feedback, please email us at support@payroo.com.au