You can manage each employees' leave accruals and balances on the Leave tab of their employee record (Payroll menu > Employees > click the employee > Leave tab.
On the Leave tab you can manage the types of leave an employee is entitled to, and enter any carry over leave balances owing to them. If you're not sure what an employee is entitled to, visit employment.govt.nz.
For more information on setting up an employees' leave, see Adding an employee.
You can also do the following tasks to manage your employees’ leave:
View an employee’s leave balances
On the Leave tab of an employee's record you can view the amount of leave they're entitled to.
Leave balances are also shown on the employee’s pay slip.
Note that these balances include the amount of leave accrued during the pay period. That is the balance shown as at the end of the pay period. This will usually be different to the balance shown on the Leave tab of the employee's record before you do the pay run.
For more information about how leave is calculated, and to check that it's set up correctly, see Leave calculations.
Cash out annual leave
Cashing out annual leave is when an employee is paid for annual leave without taking the time off work. It's also known as cashing in, cashing up, or selling annual leave.
To cash out annual leave in MYOB, it's a good idea to process a separate pay run just for the cashed out leave. For all the details see Cashing up leave.
Adjust an employee's leave balance
If an employee's leave balance is wrong, you can adjust it. Also, you might want to make sure the leave it set up correctly.
If you need to adjust an employee's leave balance, use the Opening leave balance in the employee's contact record (Payroll menu > Employees > click the employee > Leave tab > Annual holidays > Opening leave balance).
Simply increase or decrease this value to increase or decrease the employee's leave balance. For example, to increase their leave balance by 1 week, increase their opening leave balance by 1.
Need to convert hours to weeks?
Just divide the hours by the Definition of a week (which is shown in the Annual holidays screen).
If an employee's working week changes
If you change the Hours worked per week (in the Standard pay tab of their employee record), this changes their Definition of a week, but their available leave balance (in weeks) will not change.
For example:
An employee works 20 hours per week and their annual leave balance is 4 weeks.
If converted to hours, those 4 weeks equal 80 hours (4 weeks x 20 hours)
The employee's work hours increase to 30 hours per week.
Their annual leave balance will still be 4 weeks, but those 4 weeks are now equal to 120 hours (4 weeks x 30 hours).
How do I work out my employees' leave liability?
An employee's Leave liability is the dollar value of the leave they're owed in a final pay. This includes:
Annual holidays owed
Holiday pay
Alternative holidays
We're working on a new report that'll show each employee's leave liability – this report is due in April 2024. Until this report is ready, you can calculate an employee's leave liability by doing a mock final pay.
Go to the Payroll menu > Create pay run.
Choose the Pay cycle for the employees whose leave liability you want to calculate.
Enter dates for the current pay period then click Next.
Click an employee whose leave liability you want to calculate.
Clear all hours and amounts from their pay so their gross pay is 0.
Click Add holidays or leave and choose Final pay.
Select a Termination date to match the date for leave liability. This date can't be earlier than your last pay period end date.
Continue through the final pay steps and click Save.
Repeat from step 4 for each employee whose leave liability you want to calculate.
Click Next then click View pay run summary report. The total gross pay value at the top and bottom of the report represents the total leave liability for those employees.