When it comes to entering leave taken, it is important to understand how the payroll system behaves while on the default settings. When one wants to configure Leave Categories, please follow these steps:
1. Navigate to the main Employees screen
2. Select Payroll Settings
3. Select Leave Categories
4. Select the type of leave you wish to configure and pay particular attention to the section Payment Setup
Below are all the payment set up options and what they mean.
Basic: When an employee does not use timesheets, the employee's leave balance will be reduced, earnings are not impacted. When an employee is using timesheets to submit all time worked, an earnings line will be created and the leave balance will be reduced. To check or assign the employee's timesheet setting, go to the employee's 'Pay Run Defaults' page. The timesheets option
is near the top of the page.
Don't pay for the leave taken: When an employee does not use timesheets, an earnings line with negative hours will be added to reduce the earnings for the employee. When an employee is using timesheets to submit all time worked, no earnings line will be created.
Report the earnings for the leave taken against another pay category: When wanting to report payments for leave taken in a separate pay category (for reporting/journaling purposes), select this option. The earnings related to the leave taken will be assigned against the specified pay category instead of the employee's primary pay category. When this alternative is selected, the option will be given to use the rate of pay from the employee's primary pay category.
Custom: For advanced users only, this option allows the user to deduct hours from an arbitrary pay category and transfer them to another arbitrary pay category when leave is taken.
For Basis option. Please make sure the earning line is created in the pay run if “Use timesheets” option is selected or make sure to manually create the earning in the pay run, so employee(s) would get paid.
The default setting for payment setup is the Report the earnings for the leave taken against another pay category
For the setting Report the earnings for the leave taken against another pay category, a negative line of the employee's primary earnings category will be created in the pay run once leave taken is recorded. This is to offset the amount of leave being taken, in a separate line.
Therefore, when leave taken is entered in, one should see two earnings lines of the employee's primary pay category, one positive, and one negative, in addition to an earnings line for the type of leave taken. Finally, the pay run should show a line beneath the Leave Taken section, showing which type of leave was taken.
