I set an employee’s ‘normal hours’ at 40 but they haven’t actually worked this much. What should I do?

This can result in more leave being allocated to an employee.

At anniversary date, the normal hours per week (x 4 weeks) will role in to become the leave due. If your normal hours are set to 40 then 160 hours will roll in. The normal hours per week are best to be understated not overstated (eg 40 hours verse 44 hours per week).

If the “normal hours” are over-estimated then the average rate will be lower than the normal hourly rate. According to the Holiday Pay Act, leave must be paid at the higher of the ordinary or the average.

Whenever leave is paid the user can click on the leave button and check the leave rate calculations. If they are concerned about the normal hours per week then you should review it and correct it if necessary. The best time to do this is just prior to anniversary update.

Lynley Averis

Lynley is an MYOB Certified Consultant & has been involved in training in New Zealand since 1985. She's written various accounting & MYOB workbooks including co-authoring “Bookkeeping for Dummies”. She has consulted on all versions of MYOB Accounting, Retail and Payroll over the past 18 years and has previously worked for MYOB. She currently consults to NZ businesses on all aspects of business systems - her mission for clients is for them to spend as little time as possible doing accounting!