Category Archives for "payroll FAQ’s"

How do I Pay out Annual Leave in 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 become entitled to Annual Leave as yet.
The payroll will record the Annual Leave taken as Annual Leave taken in advance.

Note: Any ‘Annual Leave taken in advance’ will be deducted when the employee’s anniversary is rolled or a final pay is prepared. It is important an  employees leave remains in positive territory. If they resign then you cannot force them to repay leave in advance unless they have signed to agree or it is in their employment pay


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).

Can I change from a ‘Common Anniversary’ back to using ‘Individual Anniversary’ dates?

We would recommend that when a common anniversary date is being considered, seek advice from the Department of Labour to gain a full understanding of the rules surrounding the use of common dates. If you are moving to an individual date, you may need the permission  of the employee. It is more common to use an individual date.

To change the date to an individual anniversary date

It is only possible to revert to using ‘Individual Anniversary’ dates for new employees and existing employees that have been employed for less than a year.

If you untick the ‘Common Anniversary ‘date option all existing employees who have been employed for more than 12 months should keep this anniversary date.

Existing employees that have been employed for less than a year will need the “Anniversary Dates” changed to 12 months from their start date.

New employees can be set up using their “Individual Anniversary Date”.

common anniversary date


What is a Common Anniversary in MYOB Payroll?

A ‘Common Anniversary’ indicates that all employees Annual Leave updates are done at the same time.

This differs from the usual ‘Individual Anniversary’, 12 months after the employee start date.

Businesses that observe an ‘Annual Closedown’ often choose a ‘Common Anniversary’ date to make the management of leave easier.

The employer would normally nominate a ‘Common Anniversary’ date a few days prior to the ‘Annual Closedown’ to ensure it always comes before the ‘Annual Closedown’ commences.

This will enable the employer to run the ‘Common Anniversary’ updates prior to the Christmas pays being prepared and thereby gaining a very clear picture of each employees Annual Leave available.

Should I use a Common Anniversary Date?

There are strict rules in place with setting up a ‘Common Anniversary’ date.

We would suggest that you consult clauses 29 – 35 of the Holidays Act 2003 before continuing with setting up a Common Anniversary date (this appears in the Act under “Closedown Periods”).

It would be advisable also to consult your legal representative prior to setting up/changing your Common Anniversary date.

If you are looking for guidance, we would recommend contacting the Department of Labour.

What  Date should I choose for a Common Anniversary?

If a ‘Common Anniversary’ date is being be set, we would recommend that you choose a date prior to the date when the closedown will begin e.g. If the organisation normally closes down around the 19th – 24th of December, a date in the vicinity of the  15th -17th of December would be a good option.

This will allow you to update the Annual Leave records prior to running the last pay before the close down.

Can I change my Common Anniversary Date?

Although an ‘Anniversary Date’ can be altered it is not advisable to do so as this would require that the employees Annual Leave records would all need to be checked and manually adjusted.

Where do I set up my Common Anniversary date?

The ‘Common Anniversary’ date is set up within your Tools/Options of your payroll.

We use an ‘Individual Anniversary Date’ and wish to change to a ‘Common Anniversary Date’, Can we?

Unless you actually have a closedown period you should continue to use an individual anniversary date.
If you choose to change to a common anniversary date all leave records need to be manually checked and reset by the user.

As previously mentioned, there a very strict rules surrounding using a ‘Common Anniversary’ and we would recommend these being researched thoroughly prior to making the decision to use a ‘Common Anniversary”.

If it is decided to go ahead and set up a ‘Common Anniversary” we would recommend that this is carried out in the first year of the businesses operation.

If the ‘Common Anniversary is NOT set up within the first year of business, all leave records will need to be manually checked and reset by the user.

common anniversary date

How is the Leave Accrued in Advance figure calculated?


The Leave Accrued in Advance calculation estimates what amount of annual leave an employee has accrued since their last holiday anniversary.

For example if 2/3 of the year has elapsed since the anniversary date, the employee is potentially due 2/3 of their annual leave allocation. e.g. 0.66 multiplied by 120 hours equals 79 hours.

Note: the Leave Accrued in Advance calculation is date driven and will change whenever the pay ended date is altered.

This figure is only a guide and is not a balance that is paid out. It is used to check whether an employee has enough leave accrued to take leave in advance.#adp01

How do I correct the Holiday Pay and Annual Leave figures?


You will need to enter a correcting pay to balance off each Paycode. For example if $500 was paid out of Holiday pay you need to enter 1 HP @ minus $500, and the required number of annual leave hours at the required rate e.g. 50 hours at $10. If entered correctly the balance should be nil with zero tax to pay. Finalise this pay to correct the paycode balances.

The same technique can be used to correct annual leave balances if, for example, Annual leave was mistakenly paid using the Ordinary Time (ORD ) code.

Leave Details Normal Hours per week. Answer The normal hours/days per week field is used to calculate the annual leave allocation. For example an employee with 8% holiday pay is due 4 weeks of annual leave, if their normal hours per week is set to 40 they annual leave allocation is 160 hours.

When deciding what the normal hours per week are, it is helpful to ask the question ” If this employee has a day (or a week) off sick, how many hours would you pay?” The answer generally indicates what the normal (or standard) hours per week would be.

The normal hours/days per week figure also affects the calculation of the annual leave rate. The Normal Hours/days per week figure is used to calculate the Ordinary Weekly Pay.#adp01

I set an employee’s ‘normal hours’ at 40 but they haven’t actually worked this much. What should I do?

This can result in more leave being allocated to an employee.

At anniversary date, the normal hours per week (x 4 weeks) will role in to become the leave due. If your normal hours are set to 40 then 160 hours will roll in. The normal hours per week are best to be understated not overstated (eg 40 hours verse 44 hours per week).

If the “normal hours” are over-estimated then the average rate will be lower than the normal hourly rate. According to the Holiday Pay Act, leave must be paid at the higher of the ordinary or the average.

Whenever leave is paid the user can click on the leave button and check the leave rate calculations. If they are concerned about the normal hours per week then you should review it and correct it if necessary. The best time to do this is just prior to anniversary update.

How do I import timesheets from MYOB AccountRight into MYOB Payroll?


In MYOB Payroll

  1. Open your accounting product and print off a copy of the Activity ID’s  (These must be set up in Time Billing using an Uppercase font)
  2. Open Payroll and set up your Departments/Cost Centres using the identical names given to the Activity ID’s.
  3. Set up the Pay codes ALSO using the same identical names as the Activity ID’s and then go to Maintain Employees/Pay Default-Totals and set up the required pay codes for each employee.

In MYOB AccountRight

  1. When ready to export the data Open MYOB AccountRight
  2. Choose File, Export Data, Activity Slips from the menu
  3. In the Export Data dialog box
  4. Select Comma Separated & Data Record
  5. Select the From & To dates
  6. Click Continue
  7. Choose the following fields in this order. (It is assumed that the start & Stop times will be blank, if not then choose other fields that will be blank.) If the times are to be allocated against departments/jobs then choose the Job field instead of stop time. (The employees default department will be used and the Job will override the employees default cost centre).

Emp Co./last name
Start time
Stop time or Job

  1. Click Export, Save & Yes to save the file into the MYOB Premier folder

Open Payroll and use the Import Timesheets browser button to find the file (SLIPS.TXT) to import this data into the Payroll.

How does Parental leave affect the entitlement to Annual Holidays?

The Holidays Act 2003 states that an employee is eligible for Annual leave after 12 months of continuous employment. Time on Parental leave is included in this period of continuous employment.

When an employee returns to work after a period of Parental Leave any annual holidays taken is paid at the rate of the employee’s average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday. This rule applies for 12 months commencing when the employee returns to work after their period of Parental leave.

This differs from the normal way of paying annual leave which is at the greater of the Ordinary Weekly pay or the Average Weekly earnings. In effect an employee returning to work after taking parental leave could be paid at a rate that is lower than their ordinary weekly pay (eg usual rate is $18 per hr, leave rate may calculate to be $7 per hour)

Currently MYOB Payroll does not recognise when an employee starts and returns from Parental leave. Therefore the system calculated annual leave rate needs to be manually overwritten to enter the rate.

To do this go to Maintenance then Maintain Paycodes. Select the Annual Holidays Paycode and tick the option “Allow rate to be Modified…”

When entering a pay with annual leave the Leave button can be selected to see what the average rate weekly rate is. This can then be divided by the normal hours per week to derive an Annual Holiday rate. This is then manually entered against the Annual Holiday code.

Check this article for the accrual of annual holidays whilst on parental leave –

How do I email Payslips to employees?


1          For each employee that you want to email, go to Maintenance, then Maintain Employees then Personal Details and set up the employee with an email address and tick the Email Pay Slips box

Email payslips

2          When printing payslips you are now able to email payslips to employees flagged to receive them by email. You can specify a reply email address and a message for the recipient.

3          To email payslips from MYOB Payroll you will need to specify your Internet Service Providers SMTP server address and have an active connection.
A list of the most common Internet Service Providers and their SMTP server is below:

Telecom Xtra –
Clear Net –
Paradise Net –