If leave pay was activated for a specific number of periods, the earnings, deductions, and contributions would have been based on that specific number of periods too. The tax calculation would also have been influenced by those periods as the system would have taken into account that the remuneration was not for one period only but based on multiple periods. Should an employee return to work earlier than expected and leave pay is deactivated, there are several adjustments that must be made by the payroll administrator.

Should an employee return to work earlier than originally planned and where leave pay was activated on payroll, please take the following steps into consideration and make adjustments where necessary:
 

• Make a data backup of the company
• Deactivate Leave Pay - click on the LP button on the employee’s payslip
• Process the hours worked for the current period
• Ensure that the employee is on Average Tax
   
  Important:
   
• Deductions and company contributions for the current period have already been processed when leave pay was first activated and should therefore not be deducted nor contributed again. Manual adjustments will have to be made to remove the current period's deductions and company contributions which now reflect on the payslip. It is the payroll users’ responsibility to make sure that the deductions and contributions reflect correctly. The payroll system does not automatically make the corrections.
   
• When Leave Pay is activated, a specific tax calculation is done because the employee is paid for several weeks at once. The payroll system ensures that the tax is based on the average remuneration over the leave pay period. When Leave Pay is then deactivated, the period over which the tax was originally spread is shortened causing an increase in the tax amount. Do not adjust the tax that the system has calculated. Please expect that the tax will be higher now.
   
• Users must also consider the fact that the employee has already been paid in advance for a specific number of leave periods and now that the employee has returned to work, will they choose to deduct the ‘over-paid’ Leave Pay and then also amend the annual leave days balance? If this is done, the employee is entitled to take his/her annual leave at a later stage.
   
• The portion of variable BCEA Leave Pay that was paid for the period where the employee is now back at work, should also be reversed as the employee is only entitled to the BCEA Leave Pay payment when he/she is not physically at work. 
   
  Note: It is the payroll users’ responsibility to ensure that the correct earnings, deductions, and company contributions reflect, after the deactivation of Leave Pay.