How does Leave Pay and Separate Payslips work?

Summary

This article is a guide on how does Leave Pay and Separate Payslips work on Sage 200c VIP, Sage Classic, Sage Premier and Sage Business Cloud Payroll Professional

Resolution

What is Leave Pay ?

What is Leave Pay ?

The Leave Pay (LP) facility allows you to enter the number of pay periods for which the employee will be on leave, and during the Leave Pay periods, no entries may be made on the employee's payslips.

Employers often find the need to display the Leave Pay amount and the accompanying earnings and deductions on a Separate Leave Pay Payslip.

What happens when the Leave Pay (LP) facility is activated ?

What happens when the Leave Pay (LP) facility is activated?

Employees are placed on Leave Pay in the current processing period.
The employee receives Leave Pay for the period that (s)he is on leave and in most cases a Leave Bonus will also be payable to the employee.
Deductions are automatically multiplied by the number of periods that the employee will be on leave.
A Multiply Earnings by LP periods activated option is available on the Company Miscellaneous Screen.
This feature will multiply all Earnings by the number of Leave Pay periods, if activated. This will apply to ALL Earnings and not specific Earnings only (VIP Premier Payroll).
The current week’s payslip will reflect the current week’s wage as well as the additional periods’ Earnings and Deductions.
Once you Start a New Period, the Payslip Screen will be frozen for the number of periods that the employee is on leave.
Tax is automatically calculated according to the number of periods of leave.

How does Leave Pay and Separate Payslips work ?

How does Leave Pay and Separate Payslips work ?

The Leave Pay Payslip must be defined on the General Screen on the Separate Payslip Setup Screen.

You must define at least one other Separate Payslip for the processing period in which you are going to use the Leave Pay Payslip.

The description for Leave Pay is automatically inserted. You will not be able to alter this description.

Link Earnings and Deductions
The Leave Pay Payslip will always display last on the list.

If you increase the number of Separate Payslips to be used, the additional descriptions will be inserted above the Leave Pay Payslip.

All the Deductions and their corresponding Company Contributions are automatically linked to the Leave Pay Payslip. Tax and UIF are always automatically linked to each Separate Payslip.

When you exit the Setup Screen, you will get a message stating that changes made to the Leave Pay Setup won't be applied to employees for whom Leave Pay has already been activated. You will have to remove these employees from Leave Pay (LP) to apply this setup, after which you will have to re-activate Leave Pay (LP) for them.

Main Payslip Screen

Leave Pay (LP) must be activated on the Main Payslip.

To activate Leave Pay, click on the <LP> button and enter the number of Leave Pay periods, e.g. 3.

If the employee is linked to a Method of Calculation which contains the Leave Pay indicator, immediately after the number of Leave Pay periods has been entered, the Leave Pay amount is calculated automatically.

The Tax, UIF and other deductions will also be calculated automatically.

Leave Pay Separate Payslip

When you access the Leave Pay Separate Payslip, the Leave Pay amount, and corresponding deductions will be displayed on the payslip.

EXAMPLE:

Solution Properties

Solution ID: 201111130235970
Last Modified Date: Tue May 02 12:42:39 UTC 2023
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