Annual leave settings and calculations are based on employment types. Click on an employment type below to view the recommended set up for annual leave inThankyou Payroll.
Permanent Employee with no regular work pattern
- Full or Part-time
- Hours per day and days per week differ with no set pattern
- 4 weeks allocated annual leave entitlement after 12 months
- Full or Part-time
- Regular days and hours of work
- 4 weeks allocated annual leave entitlement after 12 months
Permanent Employee with regular hours
Click the button that applies:
Fixed-term Employee
- Full or Part-time
- Employment period is shorter than 12 months
- 8% Holiday Pay
- Lump sum paid in final pay
Casual Employee
- Only works when work is available
- 8% PAYG paid out in each pay
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Permanent Employee Annual Leave
Permanent employees are the most common employment type. They have the full set of employment rights and responsibilities. There might be small differences because of work patterns, but you can follow the same steps in this guide to set up any permanent employee. Permanent employees are entitled to:- 4 weeks of annual leave (allocated leave) after every 12 months of continuous employment as minimum entitlement under the Holidays Act.
- The employer may offer more than 4 weeks of annual leave.
Home
Employee Scenario: Full-time Employee - Salaried
Alea is a full-time permanent employee who works five days a week, 8 hours a day. Her annual salary is $52,000. Alea has been employed for 12 months continuously, so she is eligible to receive 4 weeks of Annual Leave on her Annual Leave Anniversary Date.
Use the buttons below to view Alea's set-up in the Thankyou Payroll system.
Click the button to view the field:
Alea's Employee Profile
Alea's Timesheet
Alea's Payslip
Alea's Leave Liability
Alea's Leave Calculations
Back to the Example Scenario
View other Employment Types
Viewing the Employee Profile
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Set the standard pay rate for your employee based on their employment agreement:
- In this example, it is $52,000 per year.
- This information can also be entered per hour, per day or per week.
- Fill in the days to complete a standard week. Select YES in the "Record Hours Worked". This is to accurately calculate days and part days.
- Select YES so that part leave days can be taken and paid correctly.
- Fill in the standard hours per day in the "default entries" boxes. This information is used to correctly calculate leave.
- Select YES to display pay types and rates on an employees payslip.
Scroll to the bottom of the page:
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Select the "rate set as per the Holidays Act" option.
- This is the number of weeks of Allocated Leave the employee is entitled to in their employment agreement. The system will default to the minimum of 4
- Select "Same as default standard week", this will now refer back to the "Standard Pay: Default week" Settings to determine day size.
- This box is auto-filled based on your default standard week settings. This will determine the allocation of leave. In this example, 5 days = 1 week.
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- To add a row to the timesheet, click the green + sign.
- Select the payment type: Annual Leave from the dropdown menu when leave is taken.
- Fill in the number of hours of leave taken. Ensure that you delete or adjust the hours of the corresponding "Standard Pay" row entry.
- Example: on Friday the full 8 hours are taken as Annual Leave, so the Standard Pay block for Friday is empty. On Thursday, only half day of leave is taken, so the 8-hour work day is divided between the Standard Pay and Annual Leave rows.
- Update and Save this timesheet. The timesheet boxes will be green when the timesheet is saved, like in the example.
- Check the "Gross" balance for the week to ensure that it is correct.
Back to the Example Scenario
Viewing Leave Calculations
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- Access the Leave Calculations by left-clicking in the green timesheet box of the day you wish to check. You can click in each box to view that entry's calculations and effect on leave balances.
- Scroll down to view the payment value for that entry.
View calculations for half-day leave: Thursday
View calculations for full-day leave: Friday
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Calculations for the Thursday, Half-day Annual Leave
- This shows the value of the Annual Leave payment for this entry. Scroll down to view calculations (2) and the impact on the Annual Leave Balance (4).
- If this figure is incorrect, double-check the Annual Leave Deductions (3 & 4) by scrolling down. If these are incorrect as well, the Standard Pay Tab in the Employee Profile could have been set up incorrectly.
- The Notes show which calculation will be used to calculate the Annual Leave for this day and why. Annual Leave must be paid at the greater of the Ordinary Weekly Pay or Average Weekly Pay.
- These are the hours for this day in the "Default entries for Standard Pay".
- This number shows the deduction from the Annual Leave Balance. In this example, 4 hours in the timesheet, is half of an 8-hour, so 0.5 (1/2) will be deducted from the Annual Leave balance.
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Calculations for the Friday, Full-day Annual Leave
- This shows the amount paid for Annual Leave for this day. Scroll down to view calculations (2) and the impact on the Annual Leave Balance (4).
- If figure 4 is incorrect, double-check the day size (3) If these are incorrect the Standard Pay Tab default entries and the leave settings have been set up incorrectly.
- The Notes show which calculation was used to calculate the Annual Leave for this day. Annual Leave must be paid at the greater of the Ordinary Weekly Pay or Average Weekly Pay.
- This number is the hours recorded as the "Default entries for Standard Pay".
- This shows the deduction being made to the Annual Leave Balance. In this example, 8 hours are recorded in the timesheet and this = one day.
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees will be emailed a payslip when their pay is processed by Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Alea's payslip could look like:
- Timesheet summary: the hours worked as well as other payments are displayed by pay type.
- The right-hand side of the payslip contains a pay summary. The rate at which the annual leave has been paid is displayed here.
- If this option was enabled in the Employee Profile, leave balances will be displayed here. This option can be found at the bottom of the Leave Tab.
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet. Then scroll down to the coloured block below the timesheet.
- This tells you which calculation is used to calculate the rate of payment for annual leave on this day. This calculation has to be done each time annual leave is taken. Annual leave is paid at the greater of AWE or OWP.
- Total days allocated leave available. This is calculated at allocated leave added on the 12-month leave anniversary date (if passed), plus any allocated leave still owing from before, minus leave taken in advance. When annual leave is taken, it is taken from this balance first. If leave was taken in advance, this number could be negative.
- The dollar value of accrued leave since the last leave anniversary up until the date of this timesheet. This figure includes the 8% accrual from all leave types and alt days and could inform the risk of allowing leave in advance. If your timesheet has green boxes, this number is the balance including this pay. If you have finalised your pay and the timesheet has grey boxes, this balance will exclude the current pay
- The dollar value paid for leave taken in advance is shown here.
- Days of alternative leave gained by working on a public holiday that is an otherwise working day will show here until they are taken. The value shown here is estimated based on the most recently paid day, as the alt. day will be calculated when used.
- This is the current estimation of total annual leave liability that should be paid out if this employee leaves. If this amount goes into the negative, you have paid for leave your employee hasn't earned yet and could be out of pocket if they leave now.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Permanent Employee with Variable Work Pattern: Annual Leave
* This employee can be salaried or waged. Most permanent employees have a set work pattern. If the employee doesn't, for example they work any number of days or hours per week, the employer and employee should agree to a work pattern that will allow leave entitlements to be calculated correctly. This agreed pattern should be entered into the system and updated if the pattern changes. Permanent employees are entitled to:- 4 weeks of annual leave (allocated leave) after every 12 months of continuous employment as minimum entitlement under the Holidays Act.
- The number of days of annual leave allocated is determined by the employee's otherwise working days. These should accurately reflect 4 weeks. E.g. 3 days per week x 4 weeks = 12 days allocated annual leave
- The employer may offer more than 4 weeks of annual leave.
Employee Scenario: Permanent Employee with variable hours and days - Salaried
Duan is a permanent employee who works variable hours and days each week. In his employment agreement, he is employed to work 30 hours per week, only on weekdays. His annual salary is $46,800. Duan has been employed for 12 months continuously, so he is eligible to receive 4 weeks of Annual Leave on his Anniversary Date.
Use the buttons below to view Duan's set-up in the Thankyou Payroll system.
Click the button to view the field:
Duan's Employee Profile
Duan's Timesheet
Duan's Payslip
Duan's Leave Liability
Duan's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
For leave to be calculated correctly, the employer and employee need to agree on a work pattern to enter into the system. This work pattern determines otherwise working days on which the employee can take leave, as well as the number of days of annual leave awarded on the annual leave anniversary. This work pattern can be based on the minimum number of hours per day, but will form the basis for all leave calculations and payment for leave taken.
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Set the standard pay rate for your employee based on their employment agreement:
- In this example, it is $900 per week.
- Fill in the agreed days to complete a standard week. Allocated leave will be based onthis.
- Duan works 30 hours per week, so 30/4 = 7.5 hours (which is roughly a standard work day).
- Select YES for "Record Hours Worked". This is to accurately calculate days and part days of leave, as well as his varying work hours.
- Fill in the agreed hours to complete a day, although Duan will work varying hours these are what his leave will be based on. So in this example, a day of annual leave will be 7.5 hours.
5. Select YES to ensure part days of leave can be taken and recorded and paid correctly. 6. Fill in the agreed standard hours per day in the "default entries" boxes. This information is used to correctly calculate and pay leave when it is taken. Friday is not one of Duan's otherwise working days, any leave loaded on a Friday will pay at $0.
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Select the "rate set as per the Holidays Act" option.
- This is the weeks of Allocated Leave the employee is entitled to on their anniversary.The minimum entitlement is 4 weeks.
- Set to "Same as default standard week", so full days and part days will be calculated correctly. This will refer back to the "Standard Pay: Default week" in the Standard pay settings.
- This box is auto-filled based on your default standard week settings. In this example, 4 days X 4 weeks = 16 days of allocated leave on his leave anniversary.
- This box is auto-filled based on your default standard week settings, in this example, 30 hours is a standard week.
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- Duan's variable hours worked can be entered into the week to add up to 30 hours as per his agreement.
- To add a row to the timesheet, click the green + sign.
- Select the payment type: Annual Leave from the dropdown menu for leave being taken.
- Fill in the number of hours of leave taken. Ensure that you revmove or adjust the hours in the corresponding "Standard Pay" row entry.
- Example: on Thursday Duan is taking a full day of annual leave, so 7.5 of agreed hours as per the "Default week" are entered.
- Update and Save this timesheet. The timesheet boxes will be green when the timesheet has been saved.
- Check the "Gross" balance for the week to ensure that it is correct.
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- After saving the timesheet, left-click in the entry box to view the mount being paid for the day. Scroll down to view calculations (2) and the deduction being made from the Annual Leave Balance (4).
- If this figure is incorrect, double-check the Annual Leave Deductions (3 & 4) by scrolling down. If these are incorrect, the Standard Pay Tab and the Leave settings may not match.
- The Notes show which calculation is being used to calculate the Annual Leave payment for this day. Annual Leave is paid at the greater of the Ordinary Weekly Pay or Average Weekly Pay.
- This is the hours recorded as a Standard Pay as recorded in the Employee Profile.
- This Is the number of days deducted from the Annual Leave Balance. In this example, 7.5 hours is a full day and will be deducted from the Annual Leave balance.
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees are emailed a payslip when their pay is processed by Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Duan's payslip could look like:
- Timesheet summary: the hours worked as well as other payments are displayed by pay type.
- The right-hand side of the payslip contains a detailed pay summary. The rate at which the annual leave has been paid for this pay is displayed here.
- If this option was enabled in the Employee Profile, leave balances will be displayed here. This option can be found at the bottom of the Leave Tab.
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet. Then scroll down to the coloured block below the timesheet.
- This tells you which calculation is used to calculate the rate of payment for annual leave on this day. This calculation has to be done each time annual leave is taken. Annual leave is paid at the greater of AWE or OWP.
- The net number of days allocated leave available. This is calculated at allocated leave added on the 12-month leave anniversary date (if passed), plus any allocated leave still owing from before, minus leave taken in advance. When annual leave is taken, it is taken from this balance first. If leave is taken in advance, this number will be negative. Here, Duan has 14.5 days of allocated leave available.
- The dollar value of accrued leave (8% of Gross since the last leave anniversary). This figure includes 8% accrual for the value of untaken Allocated leave and alt days. If your timesheet has green boxes, this balance includes this pay. If the timesheet has grey boxes, this is st the last pay processed.
- The dollar value paid for leave taken in advance .
- Days of untaken alternative leave owing for working on a public holiday that was an otherwise working day. The value shown here is estimated based on the most recently paid day, alt. days are only calculated when used.
- This is the current estimation of total annual leave liability that should be paid out if this employee leaves. If this amount goes into the negative, you have paid for leave your employee hasn't earned yet and you could be out of pocket if they leave now.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Fixed-term Employee - Leave 8% of Gross
A fixed-term (or temporary) employee's employment will end on a specific date or when a specified event occurs, such as the completion of a project for example. - This section will illustrate fixed-term agreements shorter than 12 months. For fixed-term agreements that are longer than 12 months, please view the settings for Permanent Employees, as they will be entitled to the same leave entitlements and a similar setup in the system.
- Fixed-term employees are entitled to their annual leave calculated with each pay. This is called Holiday Pay and is calculated at 8% of their Gross Earnings.
- This Holiday Pay may be paid out in either of two ways:
- accumulated and paid at the end of their employment (this section)
- Included in each pay (see settings for casual Employees) not the recommended option in our system.
Employee Scenario: Fixed-term Employee - Salaried
Aroha is employed on a 9-month fixed-term to cover maternity leave. Her employment agreement states she works 20 hours/4 days per week: 5 hours a day, Monday to Thursday. Her weekly salary is $520. Aroha leave is to be paid in her final pay.
Use the buttons below to view Aroha's set-up in the Thankyou Payroll system.
Click the button to view the field:
Aroha's Employee Profile
Aroha's Timesheet
Aroha's Payslip
Aroha's Leave Liability
Aroha's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Set the standard pay rate for your employee based on their employment agreement:
- In this example, it is $520 per week.
- This information can also be entered per hour, or per day.
- Fill in the days to complete a standard week. Here it is 4 days.
- Select YES when completing the "Record Hours Worked". This allows for accurate calculation of days and part days.
- Fill in the agreed hours per day. Aroha works 5 hours per day.
- Select YES so any part days of leave are accurately recorded and paid.
- Fill in the standard hours per day in the "default entries" boxes. This information is used to ensure correct calculations of a workday when taking leave.
- At the bottom of this page, select YES to show pay types and rates. This will show the employee their rates on payslips.
Scroll to the bottom of the page:
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Select the Annual Leave calculation method as "8% of gross earnings (temp and irregular scenario)". This is the setting for Holiday Pay calculations.
- Select 'Accumulate and pay later' as Aroha has asked that her Holiday Pay be paid out at the end of her employment.
- If the employee has requested that their Holiday Pay be paid out in every pay, select 'Paid into each pay'. This is the same setting as for Casual Employees.
- This is where you enter the balance of Holiday Pay already accumulated before entering this employee in our system. This figure is needed so the correct Holiday Pay amount can be paid in the final pay.
- Before being added to this system, Aroha has accumulated $582.40 in Holiday Pay since her start date of 1 February 2023.
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- The timesheet will pre-populate with the employee's standard hours. Remove the hour entry for the day of leave taken from this row.
- The green + button will add a row to the timesheet and select 'Annual Leave' for the leave taken. Fixed-term employees are paid their leave from their accumulated 8% of Gross balance.
- Example: Thursday's leave is calculated at 5 hours x $26 per hour = $130
- Update and save this timesheet. Time entries will turn green when saved.
- The 'Gross' balance shown is the weekly rate The 8% Gross accumulated will be shown in the leave liability under the timesheets
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
For a fixed-term employee whose 8% of Gross is accumulated and paid out in their final pay, you can check the calculation for each day in a timesheet.
- After you have saved the timesheet, left-click in the green box to view the value of that day.
- The Cost Tracking line will display the value of that day, based on the salary information you entered in the Employee Tab.
- In this example, the salary earned for working 5 hours on Thursday is
- : 5 hours x $26 (rate per hour) = $130
The value of the 8% of Gross earnings accumulated so far can be found in the Leave Liability information.
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Employees are emailed a personal payslip every time their pay is processed with Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Aroha's payslip could look like:
- Timesheet summary: the hours worked as well as other payments are displayed by pay type.
- The right-hand side of the payslip contains a detailed pay summary. The dollar amount paid for the day of leave taken is displayed here.
- The hourly rate at which Leave is being paid is displayed here.
- The aproximate days of leave which has accrued will be displayed once a pay has been processed.
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet, then scroll down to the coloured block below the timesheet.
- As this is a fixed-term employee whose 8% of Gross Pay accumulates, there should be a calculation showing ordinary weekly arte vs average weekly rate.
- These first four lines should show any days leave taken, the total 8% of gross to date and the dollar value paid out for any days taken.
- The two lines involving Holiday Pay Owing should be empty
- Days of alternative leave gained by working on a public holiday that is an otherwise working day will show here until they are taken. The value shown here is estimated based on the most recently paid day, as the alt. day is be calculated when used.
- This is the current estimated value of the leave liability that should be paid out if this employee leaves. If this amount goes into the negative, you have paid leave your employee hasn't earned yet and could be out of pocket if they leave now.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Casual Employee Holiday Pay - 8% PAYG
Casual employees receive their annual leave paid out with each pay. This is called Holiday Pay or PAYG (pay-as-you-go) and is calculated at 8% of their Gross Earnings. Please note:- 8% PAYG is on top of casual wages, and is not included in the minimum wage. This must be paid on top of minimum wage in order to be compliant.
Employee Scenario: Casual Employee - Waged
Marco is a casual employee who works whenever work is available. He is paid minimum wage per hour - $22.70 per hour. Marco receives his 8% PAYG with each pay. - Let's have a look at his Employee Profile -
Use the buttons below to view Marco's set-up in the Thankyou Payroll system.
Click the button to view that field:
Marco's Employee Profile
Marco's Timesheet
Marco's Payslip
Marco's Leave Liability
Marco's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Set the standard pay rate for your employee based on their employment agreement:
- In this example, it is $22.70 per hour.
- This information can also be entered per hour, per day, or per week.
- For a casual employee, there will be no default entries for a standard week. Keep these boxes empty.
Scroll to the bottom of the page:
At the bottom of this page, select YES to showing pay types and rates. This will show any pay rates used under the Notes section of the costing screen.
3.
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
- Select the Annual Leave calculation method as "8% of gross earnings".
- This chooses when the 8% PAYG will be paid out.
- As this is a casual employment agreement, the PAYG is paid with each pay.
- For fixed-term employment agreements, the option of paying the Holiday Pay at the end of the agreement is offered with the "Accumulate and pay later" option.
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
- The timesheet will be empty. Select 'Standard Pay' in the payment type dropdown menu. Now fill in the hours this casual employee has worked.
- Save this timesheet. The blocks will turn green when saved.
- The 'Gross' balance shown is the hourly rate, with the 8% PAYG included.
- For this example, the calculation is 22 hours x 22.70 (rate) = 499.40 with 39.95 (8% PAYG) included, bringing the Gross Balance to $539.35.
- To comply with the Holidays Act, PAYG must be an identifiable component of the pay. This shows the amount of PAYG included in this pay.
- The 'pay day transfer' amount indicates what the employee will receive in their bank account.
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
For a casual employee whose 8% PAYG is included in each pay, there will not be a leave calculation cost tracking done in the same way as with employees who accrue annual leave. However, you are still able to check the calculation for each day in a timesheet.
- After you have saved the timesheet, left-click in the green box to view the value of that day.
- The Cost Tracking line will display the value of the wages for that day. Please note: this number does not include the 8% PAYG.
- In this example, the value of wages for working 5 hours on Friday is as follows: 5 hours x 22.70 (rate) = $113.50
- The value of the 8% PAYG for the total timesheet is displayed in the Pay Summary.
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees are emailed a personal payslip every time their pay is processed with Thankyou Payroll. They can also view this via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Marco's payslip could look like:
- Timesheet summary: the hours worked as well as other payments are displayed by pay type.
- The right-hand side of the payslip contains a detailed pay summary. The dollar amount of the 8% PAYG earned and paid out in this pay is displayed here.
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet, then scroll down to the coloured block below the timesheet.
- As this is a casual employee who is paid their 8% PAYG in each pay, there shouldn't be any calculation information written in this area. If there is any calculation information displayed here, please contact our Customer Success Team.
- These first four lines are for permanent employees. These should have a 0 balance for a casual employee.
- The two lines involving Holiday Pay owing are for Fixed-term employees who accumulate their 8% Holiday Pay to be paid when their employment comes to an end. This should also have a 0 balance for a casual employee.
- The alternative leave balance should be 0 for casual employees. Casual employees do not receive a day of alternative leave for working on a public holiday, as this is not usually their otherwise working days. If their work pattern becomes regular, then remember to update their work pattern in their Employee Profile.
- The total annual leave liability of a casual employee should be 0. If this is not the case, please get in touch with our Customer Success Team.
Annual Leave by Employment Type
Thankyou Payroll
Created on May 22, 2023
Start designing with a free template
Discover more than 1500 professional designs like these:
View
Momentum: Employee Introduction Presentation
View
Momentum: First Operational Steps
View
Video: Responsible Use of Social Media and Internet
View
Microlearning: Enhance Your Wellness and Reduce Stress
View
Momentum: Tools Tutorial
View
Momentum: Onboarding Video
View
Microlearning: Teaching Innovation with AI
Explore all templates
Transcript
Annual leave settings and calculations are based on employment types. Click on an employment type below to view the recommended set up for annual leave inThankyou Payroll.
Permanent Employee with no regular work pattern
Permanent Employee with regular hours
Click the button that applies:
Fixed-term Employee
Casual Employee
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Permanent Employee Annual Leave
Permanent employees are the most common employment type. They have the full set of employment rights and responsibilities. There might be small differences because of work patterns, but you can follow the same steps in this guide to set up any permanent employee. Permanent employees are entitled to:- 4 weeks of annual leave (allocated leave) after every 12 months of continuous employment as minimum entitlement under the Holidays Act.
- The employer may offer more than 4 weeks of annual leave.
Home
Employee Scenario: Full-time Employee - Salaried
Alea is a full-time permanent employee who works five days a week, 8 hours a day. Her annual salary is $52,000. Alea has been employed for 12 months continuously, so she is eligible to receive 4 weeks of Annual Leave on her Annual Leave Anniversary Date.
Use the buttons below to view Alea's set-up in the Thankyou Payroll system.
Click the button to view the field:
Alea's Employee Profile
Alea's Timesheet
Alea's Payslip
Alea's Leave Liability
Alea's Leave Calculations
Back to the Example Scenario
View other Employment Types
Viewing the Employee Profile
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Scroll to the bottom of the page:
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Back to the Example Scenario
Viewing Leave Calculations
View other Employment Types
Work Pattern
Leave Setting
Information Key:
View calculations for half-day leave: Thursday
View calculations for full-day leave: Friday
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Calculations for the Thursday, Half-day Annual Leave
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Calculations for the Friday, Full-day Annual Leave
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees will be emailed a payslip when their pay is processed by Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Alea's payslip could look like:
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet. Then scroll down to the coloured block below the timesheet.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Permanent Employee with Variable Work Pattern: Annual Leave
* This employee can be salaried or waged. Most permanent employees have a set work pattern. If the employee doesn't, for example they work any number of days or hours per week, the employer and employee should agree to a work pattern that will allow leave entitlements to be calculated correctly. This agreed pattern should be entered into the system and updated if the pattern changes. Permanent employees are entitled to:- 4 weeks of annual leave (allocated leave) after every 12 months of continuous employment as minimum entitlement under the Holidays Act.
- The number of days of annual leave allocated is determined by the employee's otherwise working days. These should accurately reflect 4 weeks. E.g. 3 days per week x 4 weeks = 12 days allocated annual leave
- The employer may offer more than 4 weeks of annual leave.
Employee Scenario: Permanent Employee with variable hours and days - Salaried
Duan is a permanent employee who works variable hours and days each week. In his employment agreement, he is employed to work 30 hours per week, only on weekdays. His annual salary is $46,800. Duan has been employed for 12 months continuously, so he is eligible to receive 4 weeks of Annual Leave on his Anniversary Date.
Use the buttons below to view Duan's set-up in the Thankyou Payroll system.
Click the button to view the field:
Duan's Employee Profile
Duan's Timesheet
Duan's Payslip
Duan's Leave Liability
Duan's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
For leave to be calculated correctly, the employer and employee need to agree on a work pattern to enter into the system. This work pattern determines otherwise working days on which the employee can take leave, as well as the number of days of annual leave awarded on the annual leave anniversary. This work pattern can be based on the minimum number of hours per day, but will form the basis for all leave calculations and payment for leave taken.
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
5. Select YES to ensure part days of leave can be taken and recorded and paid correctly. 6. Fill in the agreed standard hours per day in the "default entries" boxes. This information is used to correctly calculate and pay leave when it is taken. Friday is not one of Duan's otherwise working days, any leave loaded on a Friday will pay at $0.
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees are emailed a payslip when their pay is processed by Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Duan's payslip could look like:
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet. Then scroll down to the coloured block below the timesheet.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Fixed-term Employee - Leave 8% of Gross
A fixed-term (or temporary) employee's employment will end on a specific date or when a specified event occurs, such as the completion of a project for example.- This section will illustrate fixed-term agreements shorter than 12 months. For fixed-term agreements that are longer than 12 months, please view the settings for Permanent Employees, as they will be entitled to the same leave entitlements and a similar setup in the system.
- Fixed-term employees are entitled to their annual leave calculated with each pay. This is called Holiday Pay and is calculated at 8% of their Gross Earnings.
- This Holiday Pay may be paid out in either of two ways:
- accumulated and paid at the end of their employment (this section)
- Included in each pay (see settings for casual Employees) not the recommended option in our system.
Employee Scenario: Fixed-term Employee - Salaried
Aroha is employed on a 9-month fixed-term to cover maternity leave. Her employment agreement states she works 20 hours/4 days per week: 5 hours a day, Monday to Thursday. Her weekly salary is $520. Aroha leave is to be paid in her final pay.
Use the buttons below to view Aroha's set-up in the Thankyou Payroll system.
Click the button to view the field:
Aroha's Employee Profile
Aroha's Timesheet
Aroha's Payslip
Aroha's Leave Liability
Aroha's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Scroll to the bottom of the page:
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
For a fixed-term employee whose 8% of Gross is accumulated and paid out in their final pay, you can check the calculation for each day in a timesheet.
- After you have saved the timesheet, left-click in the green box to view the value of that day.
- The Cost Tracking line will display the value of that day, based on the salary information you entered in the Employee Tab.
- In this example, the salary earned for working 5 hours on Thursday is
- : 5 hours x $26 (rate per hour) = $130
The value of the 8% of Gross earnings accumulated so far can be found in the Leave Liability information.Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Employees are emailed a personal payslip every time their pay is processed with Thankyou Payroll. They can also view this and their leave balances via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Aroha's payslip could look like:
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet, then scroll down to the coloured block below the timesheet.
Viewing the Example Scenario
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Casual Employee Holiday Pay - 8% PAYG
Casual employees receive their annual leave paid out with each pay. This is called Holiday Pay or PAYG (pay-as-you-go) and is calculated at 8% of their Gross Earnings. Please note:- 8% PAYG is on top of casual wages, and is not included in the minimum wage. This must be paid on top of minimum wage in order to be compliant.
Employee Scenario: Casual Employee - Waged
Marco is a casual employee who works whenever work is available. He is paid minimum wage per hour - $22.70 per hour. Marco receives his 8% PAYG with each pay. - Let's have a look at his Employee Profile -
Use the buttons below to view Marco's set-up in the Thankyou Payroll system.
Click the button to view that field:
Marco's Employee Profile
Marco's Timesheet
Marco's Payslip
Marco's Leave Liability
Marco's Leave Calculations
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Scroll to the bottom of the page:
At the bottom of this page, select YES to showing pay types and rates. This will show any pay rates used under the Notes section of the costing screen.
3.
Back to the Example Scenario
Viewing the Employee Profile
View other Employment Types
Work Pattern
Leave Setting
Information Key:
In the Employee Profile, leave information should be updated in TWO places: Standard Pay Tab and the Leave Tab
standard pay
leave
You are HERE
Back to the Example Scenario
Viewing a Timesheet
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Back to the Example Scenario
Viewing the Timesheet Costing
View other Employment Types
Work Pattern
Leave Setting
Information Key:
For a casual employee whose 8% PAYG is included in each pay, there will not be a leave calculation cost tracking done in the same way as with employees who accrue annual leave. However, you are still able to check the calculation for each day in a timesheet.
Back to the Example Scenario
Viewing the Payslip
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Employees are emailed a personal payslip every time their pay is processed with Thankyou Payroll. They can also view this via the Employee App. Employees should contact their employer regarding information on the payslip as this is set up by the employer. Here is an example of what Marco's payslip could look like:
Back to the Example Scenario
Viewing the Leave Liability
View other Employment Types
Work Pattern
Leave Setting
Information Key:
Leave Liability is the dollar value of all the types of leave the employee has earned (except sick leave) that is owed them in a final pay. To find this, first save the timesheet, then scroll down to the coloured block below the timesheet.