To understand how leave calculates in WageEasy you will need to have an understanding of how the award has been configured.
In the following example, I will be referring to an employee that is based on a 38 hr contract full-time, and accrues Sick Leave for an entitlement of 2 weeks/10 days for 1 year. If you have casual or part time employees, the accrual rate can be set up to accrue on selected hours worked.
Accruals:
On this tab I have used 4 different scenarios with the 2 most popular methods of accrual, being yearly and hourly
Yearly is for, employees to accrue 76 hours per year.
Hourly is for the employees to accrue on selected hours of work; this is usually the method for employees who have fluctuating hours.
The accrual rate is 0.03846 per hours worked, x 38hrs = 1.4614 x 52wks = 75.9969 per year
Note: With an hourly accrual rate, you will also need to complete the bottom section of the Accrual tab, Accrue Leave On (Applies to Hourly Accruals Only). This section requires certain boxes to be ticked for the hours that you need to have leave accrued on.
Other Awards and EBA's may require leave to be accrued on a daily or monthly basis.
Daily = 76 hrs / 365 days = 0.2082
Monthly = 76 hrs / 12 mths = 6.3333
Accrual Conditions:
Under this tab things that need to be considered are:
How you want to see the display of leave in the employee's leave record, use the drop-down on Create additional accrual records: and select what is required. Do you want to see 1 line with an entitlement or multiple lines for each anniversary or award change?
The bottom 3 tick box options need to be considered and kept in line with your current Awards or EBA's
Entitlement:
Under this tab, I have selected Number of Units: 0 Units: Days and Calculated from: Employment Commencement Date (this means the employee accrues leave and is entitled from commencement)
These fields may differ if creating Long Service Leave or Annual Leave.
Depending on your Awards or EBA's you may need to tick the bottom boxes,
Payments:
Under this tab, you can tick on and off different requirements that keep in line with Awards and Company policies; some also relate only to Sick Leave and Long Service Leave. The main one that would be ticked is: Payments can be edited at Wages Processing, and depending on sick leave entitlements, A Medical Certificate is required for this leave type.
In the majority of setups for leave payments, you would leave the Payment Calculation as the default, Use Standard Pay Rates
Auto Payments:
With Auto payments, you will need to read each section to ascertain if it is applicable, each box has an explanation.
Other:
This tab is another important one; it is used for calculating superannuation and also the tax treatment for terminations. Please read both sections, Taxation and Calculations in this tab.
If your employee is entitled to be paid sick leave on termination, tick the box Pay on termination: and select Taxation treatment at termination: Treat as ETP Payment
Parent:
As a rule, not usually used for Sick Leave
Children:
As a rule, not usually used for Sick Leave
Description:
This is the description that is shown in WageEasy and the payslip, this can be changed but it is not advisable.
STP Reporting:
STP reporting groups are built into the system and need to be correct for STP reporting.
Sick Leave Reporting Group: is Paid Leave,
Reporting Subgroup: is Other Paid Leave
To work out an hourly accrual rate, here are some examples.
Example 1:
Start with the number of weeks for the entitlement, in this example, I will use 2 weeks' Sick Leave for 1 year, 38hrs x 2 wks = 76 hrs/52wks/38hrs = 0.03846 accrual rate
Example 2:
Start with the number of weeks for the entitlement, in this example, I will use 3 weeks' Sick Leave for 1 year, 38hrs x 3 wks = 114hrs/52wks/38hrs = 0.05769 accrual rate
Note: The hours of work in a contract week do not change the accrual rate, it is the number of weeks of leave that you are entitled to.