How to activate leave pay in a bi-weekly payroll
Description

In a bi-weekly or fortnightly payroll, one pay period refers to ‘two weeks'. This is especially important to remember, for when an employee goes on leave for a length of time that does not cover a full pay "period" i.e  two weeks.

Cause
Resolution

Calculating the number of weeks to activate Leave Pay
 

Current bi-week Bi-week 1  Bi-week 2
Week 1                            Week 2 Week 1                            Week 2 Week 1                            Week 2
At work                            At work On leave                          On leave On leave                          At work

Pay 3 weeks of leave pay.

Activate 1 period of LP.

Deduct 1 extra weeks’ worth of deductions.

The payslip screen will be frozen for this biweek. Pay 1 week's wage only and ensure that only 1 weeks' worth of deductions reflect.


Review methods that include Leave Pay calculations

  • Change the Leave Pay method to calculate 1 week’s Wage multiplied by the actual weeks on Leave

 EXAMPLE: RT * 40 (hours per week) * 3 (weeks on leave) * LP/LP

Activate Leave Pay periods

  • Activate 1 period of Leave (2 weeks)
  • The deductions will have to be adjusted manually to include the extra week, or the extra week’s deductions can be deducted in the first live week
  • The employee’s payslip will not be frozen for 1 period. In the 2nd period only 1 week’s Wage will be paid in the bi-week
  • If the deductions have not been adjusted in the 1st period, deduct the remainder of the deductions in the 2nd period

 NOTE: A "period" refers to a bi-week which is made up of 2 weeks.

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