Changes to Payment of Leave Accrued Based on % of Wage

Description

When leave, which has been accrued based on a percentage of wage (i.e. where the accrual type is Percentage or Fixed and the apply to type is Wage in the header of the leave type), is paid in a pay batch the following now occurs automatically:

• the payment quantity is set to a value of 1

• the payment rate is set to the value that is equivalent to the total cost of the leave being paid for the corresponding item date.

For example, consider the scenario below where a payee took eight hours of leave, paid at a rate of $38.315625 per hour, on five consecutive days. Notice that in the example below the system has injected an automatic leave payment with a quantity of 1 and a rate of $306.525 (8 x $38.315625) on each of the five days, whereas previously the system would have injected a quantity of 8 and a rate of $38.315625 for each of the five days of leave.

Open

This change applies to payments at the Leave Payments pay batch stage, including those that are triggered automatically due to leave taken and those that are manually triggered to cash out a leave balance. This change also applies to leave balances that are paid out at the Termination pay batch stage when a payee's employment ends.

Benefits

This enhancement ensures that when leave is paid on being taken or on being paid out, and the leave has accrued based on a percentage of wage, the resulting reduction in the leave balance is equal to the total cost of the leave that was paid. In turn, this ensures that the correct monetary liability that is associated with a leave balance can be exported to your finance system.

Configuration

No configuration required.