Paying out annual leave using MYOB Payroll
When employees take Annual Leave you should always pay it out using the Annual Holiday (ANHL) pay code. This should be done even if an employee has not yet become entitled to Annual Leave.
The payroll will then record this as annual leave taken in advance. The anniversary date of the employee is most important – this is when the leave “rolls in”.
Study the Annual Leave & Holiday Pay balances below
If we enter a week’s pay over Xmas
Result once pay is finalized
Note: Any annual leave taken in advance will be deducted when the employee’s anniversary is rolled or a final pay is prepared.
When do I use the Holiday Pay code?
The Holiday Pay (HP) code exists to record the accumulating balance of Holiday Pay.
Holiday Pay should only be paid out in the following two situations:
- To a casual employee. This may be paid out ‘as they go’. However, this would need to be clearly stated in the employee’s Individual Employment Agreement.
- When a ‘final pay’ is prepared. The software will calculate any Holiday Pay and Annual Leave owing to an employee when a ‘final pay’ is prepared.
How do I correct Holiday Pay paid instead of Annual Leave?
In the event that Holiday Pay has been paid instead of Annual Leave (or vice-versa), this can easily be corrected by entering a correction pay to balance each Pay Code.
Example: If $500 Holiday Pay was paid instead of $500 Annual Leave, simply put through a correction pay for -$500 Holiday Pay and $500 Annual Leave.
Note: to enable this correction pay to be processed, each of these Pay Codes must be configured to allow their rates to be modified.
