Forum Discussion

BB937's avatar
BB937
Experienced User
3 years ago

Leave Accruals when Changing Pay Basis from Hourly to Salary

Hello, we employ fulltime, partime and casual employees.  We currently process payroll fortnightly from timesheets, but soon wish to change to change our payroll frequency, and pay basis from hourly to salary for the full time and partime employees.

 

Is it ok to have a mix of hourly and salary pay basis (hourly for casuals and salary for f/t and p/t staff)?

 

With leave accruals - will these be affected if i change the entitlement calculation (apply a new entitlement category for the f/t and p/t staff ?

 

Thanks

  • CloverQ's avatar
    CloverQ
    3 years ago

    Hi BB937 

     

    Changing the calculation method will only affect new pay runs, the hours already accrued isn't affected. Fixed rate per pay period is very straight forward, it's always the same number accruing each pay period. If you set to x hours per month or year then it will take into account the hours already accrued in the month/year. 

     

    Just be mindful that changing the calculation method will affect all employees linked to that entitlement category. Hourly employees and salary employees should have separate entitlement categories set up.

     

    Let us know if you have any other questions.

  • CloverQ's avatar
    CloverQ
    Former Staff
    3 years ago

    Hi BB937 

     

    Yes you can certainly have some employees are hourly basis and some employees on salary basis, typically you'd need to have separate entitlement categories set up for hourly and salary basis, and assign them to the relevant employees. 

     

    I'd suggest checking out this Help article for more guidance, and let us know if you have any further questions:

     

    Changing an employee from full time, part time or casual

    • BB937's avatar
      BB937
      Experienced User
      3 years ago

      Thanks Clover.

       

      The other question - if i change my accrual calculation method (ie. from percentage rate currently used for hourly, to fixed rate per pay period for salary) - will the exising leave accrual tallies be affected in anyway, or continue to sum smoothly ?

       

      Thanks,

       

       

      • CloverQ's avatar
        CloverQ
        Former Staff
        3 years ago

        Hi BB937 

         

        Changing the calculation method will only affect new pay runs, the hours already accrued isn't affected. Fixed rate per pay period is very straight forward, it's always the same number accruing each pay period. If you set to x hours per month or year then it will take into account the hours already accrued in the month/year. 

         

        Just be mindful that changing the calculation method will affect all employees linked to that entitlement category. Hourly employees and salary employees should have separate entitlement categories set up.

         

        Let us know if you have any other questions.

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.