AU Payroll - Multiple Earnings Rate in Payroll
Streamlining " Multiple of Employee's Ordinary Earnings Rate" .
I have a client who has 14 employees and 4 Ordinary Earnings Rate for each employee as their business trades 7 days a week. Each Employee is on a different Ordinary Earnings Rate. The current system on Xero requires you to create and select Multiple of employees ordinary earnings rate in the payroll settings and calculate and enter the multiplier % for each earnings rate for each employee in order for the ordinary earnings rate to be calculated and for the annual leave and carers/personal leave to be calculated. This is incredibly onerous and to consider that this needs to be then be entered in again when the award rates are released.
Other than that, the current employer has to manually add the annual and personal/carers leave for each weekly payrun. Can Xero upgrade this please?
-
Sonu Patel commented
We just found out about it when we did check some leave calculation manually.
It is frustrating, we moved to xero from 2021 and one category didn't count the leave accruals since then.
Now have to do manual leave calculation from 2021, there is no other note or warning there to notify too. -
Tanya Spence commented
Absolutely crazy that this is an issue in Xero. Why can't xero accrue leave on all "ordinary earnings" category pay items. Simple!!!! Why this was setup the way it is with only one ordinary earnings category to be able to accrue leave is beyond me. Please fix this!!!
-
Sueanne Edwards commented
I had a light bulb moment regarding this issue. I have a client that I initially provided with a pre-populated spreadsheet so they could enter the total hours eligible for leave accrual calculations so they could manually enter the hours accrued each pay run (weekly). So frustrating for them!
I thought I could add a new Pay Item to use for the Ordinary earning rate for calculation of leave accruals. I have tested and it works! A few steps to it, but super easy to set up and no more manual calculations necessary - I have written step-by-step instructions for this work around and attached to this comment. Please share any feedback if you see any issues with it :)
-
Sueanne Edwards commented
I had a light bulb moment regarding this issue. I have a client that I initially provided with a pre-populated spreadsheet so they could enter the total hours eligible for leave accrual calculations so they could manually enter the hours accrued each pay run (weekly). So frustrating for them!
I thought I could add a new Pay Item to use for the Ordinary earning rate for calculation of leave accruals. I have tested and it works! A few steps to it, but super easy to set up and no more manual calculations necessary - I have written step-by-step instructions for this work around and attached to this comment. Please share any feedback if you see any issues with it :)
-
Elise McKinnon commented
Please enable leave to be accrued on "rate per unit" ordinary earning types.
Currently, for an employee with multiple roles and separate ordinary pay rates/items, we are required to manually calculate the correct leave entitlements each pay period. Otherwise we can use the multiple of employee's ordinary earnings rate, and enter a percentage, which is really clunky.
Xero does not calculate the correct leave accrual amounts on any ordinary pay items other than the first.
-
Calia Zhou commented
pls fix it asap.
-
Accounts Manager commented
Xero, this feature has been requested for a number of years can you please inform us as to when you would be implementing such a need feature for this software.
Why can't you implement a check box to get the software to accrue leave when we choose the "Rate per unit" option like it does with the "multiple of OER"
-
Trent Ross commented
This is a defect in the current design. I cant believe we have to suggest this as an idea.
This is a critical issue and need to be resolved urgently.
The 'workaround' is completely ludicrous!
To calculate an accrual on ordinary earnings I need to create a new overtime pay item?????
There are other instances where multiple lines calculate correctly (eg Leave, public holidays). It is nonsensical that the calculation is not consistent across all items.
Further, when you add a Pay Item that fits within this defect - you get a "Green - success" message, when Xero knows that is not the case. -
Lucia Bolcich commented
I am very surprised that Xero has not resolved this issue already, with all the comments I have been reading. Please put this on the top of your list and lets get this sorted out.
-
Angela Giakoumatos commented
Xero should realise this is a very important issue. The time and effort it takes to manually amend the accrued hours seems such a 'backward' step and errors can be made so easily! Xero was such a forward thinking company with great ideas but now you are slipping behind.
We must have leave accrue for weekend, after hours etc etc etc. It is imperative this be sorted. -
Sarina Schmidt commented
If we can simply add more Ordinary Hours under Ordinary earnings rate and all hours worked in Ordinary Hours would accrue leave this would be much simpler than having to setup "multiple Earnings Rate" and having to calc the multiplication for each pay change.
Also creates a problem that we need one Ordinary Hours as a Rate per unit to put in a rate amount, but different staff have different combinations of which ordinary hours used so can't have one main with rate per unit and rest as multiple rate. -
Phil Galhardo commented
I've been asking Xero to fix this exact issue for years. They don't listen and simply say:
"At this stage there is no option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'."
Very poor if you ask me. I can't imagine how many employers are not aware of this issue in Xero and such their employees leave entitlements are being under accrued.
-
Sueanne Edwards commented
We need to have the option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'.
Employees with different pay rates that are not necessarily a specific 'multiple of employee's ordinary earnings rate' still require leave to accrue on these hours - it is too time consuming (and frankly absurd) for employers and bookkeepers to have to calculate these hours manually for each pay run!
-
Sueanne Edwards commented
We need to have the option to select leave accruals to calculate on hours worked that are not classified as 'Ordinary Time Earnings'.
Employees with different pay rates that are not necessarily a specific 'multiple of employee's ordinary earnings rate' still require leave to accrue on these hours - it is too time consuming (and frankly absurd) for employers and bookkeepers to have to calculate these hours manually for each pay run!
-
Vik Gupta commented
This will a very beneficial update to the system. In many industries people work on a roster, and may have different base rates which are not multiple earnings of each other. Currently we always have to manually calculate the leave accrual amounts for such employees.
-
Angela Giakoumatos commented
This should be a priority for xero. We have to deal with so many different scenarios everyday and something like this should already be in practice! I really would just like the ability to enter a pay rate for a pay item and select that item to accrue leave. Sounds easy enough but I realise lots goes on in the background but we already accrue leave for other items!
-
Paula Wyeth commented
I am interested to know why Xero do it this way? It seems a long way around. In MYOB it’s a simple tick on each pay item if leave is to accrue.
-
Jennifer Williams commented
Leave accrual should be the default option on all ordinary time earnings, and vary according to the leave assigned to the employee, not the pay item. It would be too easy with the current set up for an employer to trust that the leave is correct, especially for casuals only accruing LSL, and end up in breach of their obligations.
-
Kylie Brockwell commented
Many businesses work hours at different pay rates to the ordinary hours, but still need to accrue leave on these hours. Currently you can only use the 'Multiple of Ordinary Earnings' option to select to accrue leave on a pay item other than the main Ordinary Hours item. This doesn't always work as the rate is not always a multiple to 2 decimal places, and different staff have different rates, so an item has to set up for each staff member for each different rate. Would be much easier to just select 'Accrue leave on this item' on all pay items.
-
Margaretha du Preez commented
Currently we have to adjust the leave balances for every employee for every Saturday or Sunday they work and which not overtime so not multiples of their weekly pay rate