How do I Pay out Annual Leave in MYOB Payroll?

When employees take Annual Leave you should always pay it out using the Annual Holiday (ANHL) pay code.

This should be done even if an employee has not become entitled to Annual Leave as yet.
The payroll will record the Annual Leave taken as Annual Leave taken in advance.

Note: Any ‘Annual Leave taken in advance’ will be deducted when the employee’s anniversary is rolled or a final pay is prepared. It is important an  employees leave remains in positive territory. If they resign then you cannot force them to repay leave in advance unless they have signed to agree or it is in their employment pay


The Holiday Pay (HP) code is only used to record the accruing balance of Holiday Pay.

Holiday Pay should only be paid out in the following situations:

1.  To a ‘Casual’ employee.

(This may be paid out ‘as they go’, however this would need to be clearly stated  in the employee’s Individual Employment Agreement.)

2.  When a ‘Final Pay’  is prepared.
(MYOB Payroll will calculate any Holiday Pay and Annual Leave owing to an employee when a ‘Final Pay’ is prepared).

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!