Create a Leave without pay item in Reckon One
Learn how to set up a Leave without pay (LWOP) item in Reckon One, so you can pay an employee at a $0.00 rate during a period of unpaid leave.
This feature is available on all payroll and Reckon Ultimate plans.
About Leave Without Pay items
A Leave without pay (LWOP) item is an Other leave item that always pays at a $0.00 rate in a pay run, instead of the employee’s usual rate. You might need to use this when an employee wants to take leave but has exhausted their paid leave entitlements. You can still override the rate in a pay run if you need to.
Create a Leave without pay item
- In the Settings menu, select Pay items.
- Click Create pay item.
- Select Leave.
- In the Leave type field, select Other.
- In the Leave sub-type field, select the relevant sub-type: Paid Parental Leave (PPL), Workers Compensation (WC), Ancillary and Defence Leave (ADL), Time off in Lieu, or Other.
- Enter a name for the item in the Leave item name field.
- (Optional) Enter a description.
- Select an account in the Expense field.
- (Optional) Select Report as qualifying earnings if the item should be reported as qualifying earnings for Payday Super.
- Under Record accruals for this leave item, select Yes or No.
- Select Yes if you want Reckon One to keep a leave balance for this item once it’s added to an employee’s leave entitlements.
- Select No if you don’t want to record a leave balance for this item at all.
If you select Yes, complete the accrual fields that appear under How item is accrued by default. Learn more about accrual fields for Other leave items.
- Under Other leave preferences (optional), select Treat item as Leave Without Pay (LWOP). The pay rate for this item will default to zero when used in a pay run, instead of the employee’s rate. You can still override the rate in the pay run if needed.
- (Optional) Select any of the other preferences that apply. Learn more about other preferences for Other leave items.
- Under Superannuation preferences (optional), select the super pay items you want this leave item’s hours included in when Reckon calculates superannuation.
- Click Create leave item.
