Leave Accrual Methods (NZ.)

Overview

You will need to nominate an accrual method for each leave category that you create.

When configuring a leave category in a New Zealand entity, choose from the options outlined below:

Non-Accrued	When the Non-Accrued leave Accrual Method is used, you’ll be able to assign a starting balance, but the system will not accrue further leave. The Entitlement Amount can be set to 0.0 if no initial entitlement should be allocated, and can be updated as needed by adjusting the leave balance. Commonly used for leave entitlements such as Parental, Compassionate or Bereavement leave.
Annual Lump Sum	This accrual method is for configuring Australian leave categories and is not designed for NZ payroll and leave accrual.
Percent of Time Worked	Accrues based on time worked. A pro-rata value calculated by using the actual hours worked as a percentage of a full-time equivalent workload. Additional fields: Active Beginning On - the date that the leave is first active Entitlement Percent - the percentage used in the accrual calculation Accrual - checkboxes to indicate which Pay and Leave Items should be included in the total hours that leave will accrue on
Days of Employment	Allows set up of lump sum leave categories where entitlement accrues once an employee meets a specified number of ‘days of employment’. Additional fields: Days Worked Before Triggering - the number of days that the employee must have worked before the entitlement is applied Entitlement Amount - the total entitlement units to be issued
Per Paycycle	Accrues a fixed number of units each pay cycle Additional fields: Active Beginning On - the date that the leave is first active Reset Anniversary - the date that the entitlement resets each year, if applicable Entitlement Amount - the total entitlement units to be issued each pay cycle
Overtime	To assist with recording time in lieu Additional fields: Weekly Overtime Threshold (Hours) - the limit of hours that are considered as ordinary hours. Hours submitted which exceed the threshold can be held as time in lieu for employees to take at a later time Entitlement Multiplier - a decimal value that can be used to multiply the total value of the entitlement units
NZ Annual Lump Sum	Used where employees receive their leave entitlement as a single amount after a period of continuous service Gap in Continuous Service is the number of days that an employee can not work to still be considered as in continuous service. Clear Leave Type is an optional field to set whether the balance is cleared when a lump sum is allocated (eg if a lump sum is allocated to Annual Leave, the Holiday Pay balance is cleared) Set with a fixed or calculated Entitlement Amount multiplier. Fixed will use the value you enter as the entitlement amount Calculated allows you to select from a list of options for which calculations will apply: Expected Work Week Total Hours Worked 4 Week Average - sum of hours from the previous 4 weeks up to and including the last pay period (before the entitlement date) divided by 4 to determine the hours per week. This is multiplied by the Multiplier to get the leave entitlement   eg if the average hours for the last 4 weeks is 40 hours, and the Multiplier is 4, the leave entitlement is 160 hours (4 x 40)  52 Week Average - sum of hours from the previous 52 weeks up to and including the last pay period (before the entitlement date) divided by 52 to determine the number of hours in a week eg if the last 52 weeks' average of a week is 30 hours and the Multiplier is 4, the leave entitlement is 120 hours (30 x 4)  Greater of 52 or 4 Week Average - calculates both the 4 week average and 52 week average and applies whichever is greater If your Entitlement Amount is Calculated, you can select an Offset Leave Category. This will offset the entitlement accrual for the leave category you are configuring against any leave taken in the selected category. This will occur on the Reset Anniversary of the offset leave category you select. (eg Annual Leave entitlement can be set up with an Offset Leave Category of Annual Leave - Taken in Advance) Set the Rate Calculation Method to Multiplier or Dynamic Rate. If you select Dynamic Rate, you will need to: select which Dynamic Rate calculation to apply to the leave category choose between using an employee's Full Time Week or the Actual Time Worked (hours or days) for the relevant timesheet period to calculate the rate. When the ‘Display balance in Hours with Week Conversion’  checkbox is ticked: leave requests will show the Total Leave, Current Balance and Available Balance in hours and weeks. This applies to Staff/Admin, Approver and Employee views leave request submission and approval emails will show the Units Requested, Current Balance and Available Balance in hours and weeks.
Periodic Lump Sum	Used where employees are allocated a lump sum amount after specified periods of continuous service Tick the checkbox to ‘Use NZ Sick Leave Entitlement Checks’, if required Allows you to set initial and thereafter entitlements, where a specified amount will be allocated after the Initial Period with additional amounts allocated using the Thereafter settings. A Maximum Entitlement value will cap how much leave can accrue for the leave category: If no Maximum Entitlement is set, a leave balance will continue to accrue indefinitely. If a Maximum Entitlement is set, the leave category balance will continue to accrue until this value is reached. No additional accrual will calculate beyond this value.
Percentage of Gross Earnings	Allows the calculation of a set Entitlement Percentage against a supplier pay item Reset Anniversary sets the date that the entitlement resets each year, if applicable. For Holiday Pay, this is also the date that any accrual will be offset to the associated leave category (eg Annual Leave).  The Accrual checkboxes at the bottom of the settings can be used to nominate which leave and pay items are included in the gross pay calculation
Percentage of Gross Earnings Conversion	Used to convert another leave category into a new accrual. For example, a separate Annual Leave in Advance category will be set with Percentage of Gross Earnings Conversion, to estimate the accrual if an employee's Holiday Pay was converted into leave hours or days. You'll need to nominate the leave category that you would like to convert in the Convert Leave Category dropdown, and set the Rate Calculation Method for this conversion. If this leave category is set up to offset to another (eg to Annual Leave), this will happen on the employee's next entitlement anniversary. This leave accrual method can be set to Hours or Days.
Pay As You Earn (Do Not Accrue)	Allows the calculation of a set Entitlement Percentage against a supplier pay item The amount is paid to the employee as they earn it rather than accruing as a leave category The Accrual checkboxes at the bottom of the settings can be used to nominate which pay items are included in the gross pay calculation