AU Payroll - Accrue Leave on 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?
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Lisa Bell-Chambers
commented
Cannot believe this is not already a feature available. Please make this a priority as it takes a lot of work around for xero users and potential for errors
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Vicki Liang
commented
This issue affects me as well—currently, if an employee is meant to accrue leave over the weekend, the automation isn’t functioning as expected. I’m hoping Xero will address and improve this functionality as a priority.
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Patricia Rynne
commented
Repeating Joel's comment from July 2024 as it covers the issues perfectly:
"This is an issue for me as well, multiple employees on different pay rates depending on the day (weekday, Saturday, Sunday, public holiday). The 'multiple of employee's ordinary hours' function doesn't really work as the multiple isn't the same for each employee. This means that you can't setup a pay template as the hourly rate needs to be manually updated every pay run anyway.
Instead, when setting up a pay item there should be the option to tick the 'accrue leave for this earnings rate' box for 'rate per unit' rate types and not just the 'multiple of employee's ordinary hours' rate type. That way Xero would accurately record leave accruals and you could set up a pay template with the correct pay rates for each day, for each employee.
Much time would be saved if this feature worked properly."
It amazes me that this still hasn't been resolved. I wonder how many employees are showing lower leave balances than they are actually entitled to because of this.
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Meredith Caple
commented
This has been an issue for a long time and I first raised this back in July 2021.
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Michael Wentworth-Bell
commented
Please add this feature. It's shocking to discover that it's not supported!
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Rachael Reilly
commented
Manual work arounds are not a sufficient resolution and can create further issues from errors, employee confusion when viewing payslips & general additional work.
It should not be hard to add the check box of accruing leave to any and all earnings pay items you wish to create.
This is also extremely difficult and overwhelming to teach to new payroll staff.
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Karen Driver
commented
Errors occur entering it manually
If MYOB can do this, surely Xero can -
Linda Cameron
commented
It is imperative that this be fixed
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Courtney Fisk-Walsh
commented
Leave Accrual to be calculated on ALL ordinary pay item types not just the default ordinary hours. This is especially helpful for employees who have different ordinary earnings in their pay template. Currently this leave accrual has to be entered manually even though all pay items are setup as ordinary hours.
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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!!!
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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 :)
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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 :)
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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 :)
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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.
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Joel Cox
commented
This is an issue for me as well, multiple employees on different pay rates depending on the day (weekday, Saturday, Sunday, public holiday). The 'multiple of employee's ordinary hours' function doesn't really work as the multiple isn't the same for each employee. This means that you can't setup a pay template as the hourly rate needs to be manually updated every pay run anyway.
Instead, when setting up a pay item there should be the option to tick the 'accrue leave for this earnings rate' box for 'rate per unit' rate types and not just the 'multiple of employee's ordinary hours' rate type. That way Xero would accurately record leave accruals and you could set up a pay template with the correct pay rates for each day, for each employee.
Much time would be saved if this feature worked properly.
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Calia Zhou
commented
pls fix it asap.
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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"
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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. -
Heather Palmer
commented
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.