AU Payroll - Do not update historical payslips when new leave balances are added
We recently had an employee which had a leave type reinstated after a period of over 12 months of it not being used. There was a balance sitting in there for the duration of time that it wasn’t active, and therefore not showing on any payslips that were provided to the employee or filed. We are now in a position that we had to reactive this leave type to be in line with STP requirements and showing leave loading on a separate line. When we reactivated this leave type, ALL payslips for the period of over 12 months were updated to show this accrued balance (so they no longer reflect what was provided to the employee at the time of payment or what was filed). We understand where the figure came from, (the balance should been cleared at the time of payout, however the leave type in payout was coded elsewhere to another AL and therefore the balance remained in this one), however historical data on payslips should not be amended in anyway. Put simply its illegal to make changes to a payslip after its been issued to an employee. This balance should not of shown in the leave tab within in the employee, and future payslips (if not rectified), but should be changing prior payslips after the fact. in summary, all historical data should be locked so that nothing can be amended after filing/providing to the employee.
Hey Amy, I know it's been a little while since you started your idea here. Taking another read through the situation you described, there are a couple of options which depend on whether you need a record of the adjustment.
- If you do need a record of the adjustment you'd want to post an unscheduled pay run to reverse out the leave balance for the pay period in which it should have been paid out.
- In the case you don't need a record, you could simply adjust the opening balance for the leave type within the employee's record.
We have help for both of these processes detailed in this article on Xero Central.