Setting Up Leave Accruals/Entitlements in MYOB

For new leave accruals, you need to set up two categories:

• Wage category which is used to pay the employee when leave is taken
• Entitlement category which is used to calculate the amount of leave the employee accrues each pay run

Set up the wage category

1. Go to the Payroll command centre & click Payroll Categories. The Payroll Category List window appears.
2. Click the Wages tab.
3. Click New. The Wages Information window appears.
4. Enter a name for the new wage category. E.G. ‘Annual Leave - Hourly' or ‘Annual Leave - Salary'.
5. For Type of Wages select Hourly to set up leave for both hourly and salary employees. Select the Regular Rate Multiplied by option and ensure 1.0000 is entered in the field. Select Automatically Adjust Base Hourly or Base Salary Details. When you record leave, base pay amounts will be adjusted for the amount of leave paid.
6. Click Employee. The Linked Employees window appears, displaying a list of all your employees.
7. Select the employees who are entitled to these payments then click OK. The Entitlements Information window reappears.
8. Click OK then click Close.

Set up the entitlement category

1. Go to the Payroll command centre & click Payroll Categories. The Payroll Category List window appears
2. Click the Entitlement tab.
3. Click New if you want to create a new entitlement category, or click an existing category then click Edit. The Entitlements Information window appears.
4. Enter a name for the entitlement category. For example ' Annual Leave Accrual - hourly'.
5. Select one of the three options for Calculation Basis:
• User Entered Amounts per pay period. Select this option if you want to manually enter the number of hours accrued in each pay period. You may want to do this if the amount varies each pay period.
• Equals x percent of. Select this option if you pay your employees hourly and want the accrual to be a percentage of hours worked. Enter the percentage in the first field and select a wage category in the second field. Generally, you will select Gross Hours for the wage category. For more information, see support note Calculating payroll accrual percentages. Also, if you want to exclude certain wage categories from the gross hours calculation, e.g. Overtime, click Exempt. The Entitlements Exemptions window appears. Select the wage categories you want to exclude and click OK.
• Equals x Hours per. Select this option if you pay your employees a base salary. Use this method to accrue a specific number of hours of leave per pay period, regardless of how many hours are worked. Enter the number of leave hours based on the selected period.
6.  If you want the number of accrued hours of leave to appear on the employee pay advice, select the
7. option Print on Pay Advice.
8. If you want to carry over the hours of leave that are accrued when you begin a new payroll year, select the option Carry Remaining Entitlement Over to Next Year.
9. In the Linked Wages Category field, select the wage category you set up earlier in this support note.
10. Click Employee. The Linked Employees window appears, displaying all employees.
11. Select the employees who are entitled to the leave.
12. Click OK. The Entitlements Information window reappears.
13. Click OK then click Close