Hi, one of our employees resigned, giving 2 week's notice. He had -44.5 hours accrued for Annual Leave, which we are taking off his final pays. His last week and a bit's pay will not quite cover the repayment of the negative balance. Do we process a normal pay for his last week, then separate treatment of the leave on termination? How is the negative leave on termination processed in MYOB?
Hi FionaH2,
In situations like this, you'll need to handle the final pay and the negative leave balance carefully. Typically, you would process the employee’s final pay as a regular pay for the hours worked during their last week, and then handle the negative leave balance as part of the final pay process.
To process the negative leave balance, you'll follow the steps for processing a final pay. Since the employee has a negative annual leave balance, you'll need to account for the repayment of the leave during termination. Here's a helpful guide that walks through the steps: Processing a Final Pay.
I hope this helps!
Regards,
Earl
Hi Earl_HD,
Thanks for getting back to me, I'll give this a go tomorrow and let you know. Just an additional note, the boss has decided he won't chase the employee for the overpayment of the amount that is over and above his net pay for the week. He'll wear the cost, its not that much. This shouldn't change things though.
So its essentially still the same process as a regular final pay then:
Thanks for sending the procedures through.
I'll let you know how I go.
Kind Regards,
Fiona
Hi Earl H_D,
I hit a roadblock - when processing the "Pay Unused Leave" section in the Final Pay. When the hours came up as negative, it wouldn't let me continue, it came up with a message "Total unused annual leave must be more than zero". I guess I move straight to Reporting the departure to the ATO and follow the steps from here on in. I won't be able to process the negative hours in MYOB, they will be removed in the final washup.
Kind Regards,
Fiona
Hey FionaH2,
If you haven't reported the departure to the ATO, you can try to process the unused leave pay again. Just the same process you did. Enter the leave hours as a negative value against the unused leave payroll category. This way, it will reduce the final pay's net amount to reflect the negative leave balance. You'll also need to speak to your accountant as it might impact the employee's PAYG and superannuation.
Best regards,
Doreen
