UK Payroll - Calculate hourly for leave/sick days
UK Payroll: Leave / Sick Days
Xero payroll nearly always miscalculates sick pay and absence deductions if staff are paid an annual salary for two reasons;
1) It works on average number of days in a month when month vary in working days every month and recalculates an inaccurate hourly rate from which it deducts absence (sometimes this is in favour of the employee but more commonly isn't) meaning that it often deducts too much from them and has to be manually recalculated.
2) It does not have the capability to deal with part-timers so if you have someone who works 3 days a week say (24 hours a week). If you post them as being off sick for those 3 days then unless you override the sick hours if will deduct 14.4 hours instead instead of their whole working week.
In response it would be better if Xero worked on actual hourly rate when deducting hours which can be quite easily re-programmed by taking the salary dividing by 52 and then dividing by hours worked in the week which is already input when putting in a salary which would solve the issue with full-time deductions being wrong.
Secondly, would be even better if you could enter a working pattern into Xero (as even full-timers often work different hours on different days) and then when you enter absence if used this and their actual hourly rate to compute the correct deduction.
As it stands at the moment it is getting pretty much 100% of absence deductions wrong.
Luke Moore
shared this idea
Hi everyone, I wanted to confirm with the release of working patterns this is now possible 😊
Working pattern templates create default work schedules for employees to ensure they are paid and accrue leave correctly, as part of their salary and wages settings.
You can now;
- Create or select from working pattern templates
- Add working patterns manually or using the template
- Setup multiple weeks of a working pattern
Thank you for your support and contribution through the idea here.
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Karl Adams
commented
Xero defaults hours per day at 8 hours yet not all businesses have 8 hour working days. Need setting for user to confirm number of hours. Currently holiday allowance calculated incorrectly as a result and needs manually adjusting when approving. Also need option to select half day holiday, or set number of hours. It seems this option has disappeared from Xero Me app.