Skip to content
← Payroll & expenses

Enter your idea

Payroll & expenses: Payroll

Categories

AU Payroll - Monthly calculation based on hours worked in month

Update the monthly payroll to calculate based on the number of work hours in the month, rather than taking the yearly salary / 12 / number work hours. Given that each month has a different number of work days, the pay rate changes every month and this is a compliance issue.

10 votes

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close

We’ll send you updates on this idea

Kelly Thompson shared this idea  ·   ·  Report…  ·  Admin →
How important is this to you?

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close
Gaining Support  ·  AdminDavid Reynolds (Admin, Xero) responded  · 

Thanks for your patience, it’s been a little while since you raised this idea, so we wanted to check in. We've now reviewed this idea and have moved it to Gaining Support status.

To help your idea gain traction, please share it with colleagues so they can vote for it too. The comment section is also open for all members to share how this feature would improve their Xero experience.

Show previous admin responses (1)

We're glad you're here

Please sign in to leave feedback
Signed in as (Sign out)
Close
Close
Submitting...
An error occurred while saving the comment
  • Martin Ogden commented  ·   ·  Report

    I think I worked out how to fix this. Can someone check. Ticket should stay open so it is clear and easy to apply AND can be applied to groups or ALL employees.

    Xero AU Payroll - Monthly pay based on actual working days
    Setup:

    Payroll Settings > Pay Items > Ordinary Pay: set Rate Type to "Rate per unit", Units to "Hours"
    For each employee: Payroll > Employees > Pay Template > add Ordinary Pay earning line with hours = 38, the annual salary and Calculation Type "Annual Salary"

    Result on payslips:

    Hourly rate derived from annual salary (annual / 52 / 38)
    Hours vary each month based on actual working days
    Public holidays and sick leave tracked as separate lines at the same rate
    Total earnings reflect the real working days in each pay period

  • Martin Ogden commented  ·   ·  Report

    This is a major compliance issue.

    Leave taken per day does not vary per month. This is a bug as not fit for purpose. to use the functionality would breach compliance

  • Diana Zou commented  ·   ·  Report

    Existing monthly payroll, pay stays constant every month. Whereas hourly rate changes depends on the working days of that month, leave taken instead of 7.6 hours a day, also varies depends on working days of that month. When employee terminate, the annual leave pay out is also calculated by a variable rate * leave hours accrued in system. If someone leaves in a 23 working day month could end up getting a lot less then others leaving in a 20 working day month, giving 23 working day's hour rate is a lot lower than 20 working days.
    This is a compliance issue, please fix this before small business gets in trouble.
    Hourly Rate Must Be Fixed!!!

  • Diana Zou commented  ·   ·  Report

    Understand you completely, hourly pay rate changes every month, leaves taken hours changes depends on working days of that month, terminationg payment is paid out based on variable hourly rate * accrued leave. this is ridiculous!

  • Natalie Hill commented  ·   ·  Report

    Can Xero payroll show monetary accruals at 12.07% of the overall monthly wage rather than days accrued