AU Payroll - Calculate leave on multiple payroll rates
Need to be able to accumulate annual leave and sick leave when an employee has to rates of pay for example: working in two departments - one pay 24.50hr and the other department pays $24.17hr, currently Xero does not accumulate pay on multiple ordinary hours pay rates, one has to be and overtime rate using multiple of hours how can you do this for a rate with a difference of 33c. I also have the same issue with an employee who works week days at one rate, saturdays at another rate and sundays at a third rate. - I have been back and forward with Xero support on this and their only anser is to manually adjust the persons leave balance. This is not good enough, we pay for a payroll system and it doesnt do what it should do.
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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 :)