Long Service Leave dollar value incorrect when terminating an employee in Payroll Premier

Legacy KB ID: 4725

Question

Why does Payroll Premier’s Termination Wizard calculate the incorrect dollar amount for Long Service Leave for some employees?

Answer

You may experience this issue if your employee has:

·         A “salary” rate (as opposed to “annual salary”) with hours listed in the Pay Rates tab of the employee record;

·         has overtime rates (Time & ½; Double time, etc) with a number of hours listed in the Pay Rates tab

The basis for calculating the hourly rate of pay for Long Service Leave is the Salary or Annual Salary and the normal hours worked.  For “Salary” items, Payroll Premier will take the hours listed in Hrs/Qty column of the Pay Rates tab. 

As overtime rates are based on Normal Hours, any listing of overtime rates with hours stated will be included in the normal hours of the period.  These hours will be divided into the Salary amount to determine the hourly rate.  The result will be a lower hourly rate as more than the normal hours have been used.


Workaround

Before starting the Termination Wizard, enter 0.00 into the Hrs/Qty column for the overtime rates line. 

 

If you do not have overtime hours listed in the Pay Rates tab of the Employee Record and you have this problem, rebuild your data file and try again. 

 

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