How do I Pay out Annual Leave?

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 become entitled to Annual Leave as yet.
The payroll will record the Annual Leave taken as Annual Leave taken in advance as shown in the screen shot below.

Note: Any ‘Annual Leave taken in advance’ will be deducted when the employee’s anniversary is rolled or a final pay is prepared.

IMPORTANT

The Holiday Pay (HP) code is only used to record the accruing balance of Holiday Pay.

Holiday Pay should only be paid out in the following situations:

1.  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.)

2.  When a ‘Final Pay’  is prepared.
(MYOB Payroll will calculate any Holiday Pay and Annual Leave owing to an employee when a ‘Final Pay’ is prepared.)

Related posts:

1. Paying out Annual Leave using MYOB Payroll
2. How does Parental leave affect the entitlement to Annual Holidays?
3. How do I correct the Holiday Pay and Annual Leave figures?
4. My Annual Leave update didn’t work…!
5. How is the Leave Accrued in Advance figure calculated?