iPROsoft Pty Ltd
Version 2.7 - November 2004

Common Holiday Payroll Queries

CONTENTS

• Foreword
• Annual Leave Loading
• Employee Payment Bonus
• Payout of Annual Leave
• Tax Calculations
• Adjustment of Annual Leave
• Further Assistance
  

Foreword
The information provided in this document does not constitute and is not intended to be accounting advice. It is intended only as guide to setting-up the iPROsoft application software to achieve outcomes consistent with generally accepted accounting practice. Should you require specific accounting advice, we recommend that you obtain this from your accounting services provider. Should you require further information on the methods iPROsoft employs, or on setting-up the application to achieve those outcomes, please contact our support desk.

Annual Leave Loading
If your company pays leave loading each time someone takes annual leave, set it up in the E311 – Awards as “normal” and iPROsoft will calculate it for you.

Some companies , however, choose to pay annual leave loading out at set times during the year rather than when annual leave is actually taken. If this is the case leave loading should not be set up in E311 – Awards or it could end up being paid twice!!!

The easiest way to calculate the value of someone’s leave loading is to use the Test System via E353 – Timesheet & Payroll Makeup screen. Firstly, in E311 – Awards enter the leave loading percentage and set the Annual Leave Load Qualifying Period as zero days. In E353, enter the total annual leave hours to be paid out against the annual leave job number (job 4) and take note of the leave loading calculated by iPROsoft in the pay makeup screen. In the live system, enter this amount for leave loading into the adhoc allowances box at the bottom of E353 - Timesheets and Payroll Makeup.

Alternatively, you may choose to set up a scheduled adhoc allowance in E271 for leave loading and select this in E353 via F7 Load/Allow.

Employee Payments Bonus
Some companies pay employee financial bonuses at certain times of the year. This can be processed in several ways:

If you wish to be able to report this by job and dissection:

• Use the adhoc allowances box at the end of E353 – Timesheets and Payroll Makeup.
  Or
• You may set up a scheduled adhoc allowance in E271 for Bonuses and select this in E353 via F7 Load/Allow.

Or, alternatively it may be entered in the lump sum box on the pay make up screen. This will be recorded against Job 5 (set up in E1102 – Overhead Job Input) and has limited reporting, e.g. R362 – Pay Makeup Summary Report will show this.

Payout of Annual Leave
If your company chooses to pay out all outstanding annual leave at Christmas or other nominated time:

• Check E21 – Standard Rates and ensure that the question “System check for ordinary and overtime allocation” is set to 2.
• To process the payout of annual leave, first you need to establish how much leave is due. To do this, run E353 – Timesheets & Pay Makeup, select the employee code and enter. Move the “Are all entries correct?” box to the side and note the value of Annual Leave Accrued Hours. This value will include the accrual for the current week ending you have selected.
• Once you have this information, open E353 – Timesheet & Payroll Makeup and commence processing the annual leave. Use job number 4 (annual leave) and an appropriate dissection code. A maximum of 80 hours per day can be entered.
• Ensure that all hours are recorded as ordinary time. If you use the default overtime allocation box (Z35105 – Default Overtime Allocation), override the overtime allocation where necessary.
• Enter any normal pay for the week. Once again you can override the overtime allocation to record the appropriate ordinary/overtime hour splits.
• If a message “Overtime is not applicable” appears, you may need to review the setting in E311- Personnel Awards for the flag Will the maximum hours for leave be that of the Normal Working Day. If you answer “N”, leisure leave / RDO will accrue during periods of leave (annual, sick, public holiday) if appropriate, and annual leave loading will be paid on a full day, irrespective of time deducted for leisure leave accrual.
• Upon pressing escape the following screen should appear, simply enter on this box to continue.
  
  
  
• If this screen does not appear, check E21 - Standard Rates and ensure that the question “System check for ordinary and overtime allocation” is set to 2.
• Complete the payroll as normal.
• Check to ensure that the correct award allowances have been calculated. In some circumstances award allowances will not be paid when annual leave is paid out.
  

Tax Calculations
iPROsoft Pty Ltd does not provide tax advice. If you are not sure the tax calculation is correct, check the following:

• Have you entered the latest tax co-efficients via E181 – Income Tax Co-efficients?
• Do you use average income year to date for tax calculations? If so, is Z35101 - Use Average Income YTD For Tax Calc installed?

By pressing F9 from the pay makeup screen within E353 – Timesheets and Pays, you can view the tax calculation being completed by iPROsoft. If after checking all of the above you are still unhappy with the tax calculation, you can override the value manually.

Adjustment of Annual Leave
In some instances employees will be paid in advance for their annual leave but will return to work early and need to have their annual leave hours restored for use at a later time. Negative hours can be entered into iPROsoft. Clients have two options:

1. Open the original pay (if it was an advanced pay, make sure you open it as an advance pay again). Delete the original entries and re-enter the correct information. By doing this you will have no record of the original transaction. If there is any difference in the pay calculations, these will need to be addressed.
   Or
2. Process negative leave hours and positive job hours together with the first pay after their return to work. This will show all the transaction records for the week on the payslip.

Further Assistance
If you would like any additional information regarding this document or information regarding any other aspect of our iPROsoft software please do not hesitate to contact our support desk.

Telephone: +61 7 3004 6100
Fax: + 61 7 3004 6143
Email: support@iprosoft.com