Payroll AU: Accrue Leave option for all Rate Types
When setting up new payroll items there is only the option "Accrue Leave for this Earnings Rate" on the "Multiple of Employees' ordinary earnings rate" and not " Fixed Amount" or "Rate per Unit".
When you have several ordinary earnings rates that are not multiples it's a problem as then leave is not accruing on the additional earnings rates.
To fix this all Xero needs to do is simply add the "Accrue Leave for this Earnings Rate" checkbox on all items. I have asked Xero repeatedly over the last 4-5 years to add this feature and they give weak "workarounds" that are not helpful or apply in my situation. I simply want them to fix the original issue and not dismiss it as not being on their roadmap.
The same issue has been discussed in this thread and it was also dismissed. I am not the only one.
Please add this feature ASAP Xero. No more workarounds or dismissive responses.
I can guarantee other Xero users and advisers have been under accruing leave in Xero due to this issue and leaving businesses open to Fairwork legal action for under reporting employees leave balances. For gods sake even MYOB as the ability to accrue leave on whatever you want, why not Xero. MYOB is looking more tempting to me each day.
Hi Phil, thanks for re sharing this feedback with us.
While we don't currently have plans to build this exact feature, I wanted to share that it is already possible to accrue leave across multiple pay rates in Xero. This isn't a workaround—the system is designed to handle awards with multiple earnings levels or penalty rates.
Additionally, you can configure leave accruals at an overall rate rather than strictly at the pay item level. For instance, you can set leave to accrue at a fixed rate regardless of which pay item is used in the pay run.
If you’d like step-by-step help setting this up, please reach out to our support team by raising a case with our team from Xero Central. We’d be happy to guide you through the process!