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susanwarren
Level 2

Annual leave accrual when someone's hours changes

I'm sure I've seen something about this before but cannot find it now.

 

We have some employees whose standard hours of work are changing. They accrue their annual leave in advance, so for example, someone on 30 hours per week has annual leave of 150 hours at the start of the year.

 

They are now changing to 35 hours per week, and I therefore need to increase their annual leave allowance. Is there a way for QB to do this or do I have to manually calculate the additional leave, and add it to a pay run (Accrue leave)?

 

Ditto for someone changing from 37 hours a week to 30 - their allowance should be decreasing but again I don't see this changing automatically. Does it need to be calculated manually? It seems awkward to do so given I can change someone's hours in the system and apply future dated pay changes (but not future dated hours changes - which would be a nice feature, to be able to say "from 1/10/22 Beverly's hours change from 37/week to 30/week and her salary decreases accordingly").

 

I cannot set a part-timer to have the same maximum accrual as a full-timer, despite their hours being shown as lower - so their Leave Allowance Template will need to be changed before the next annual leave year begins, otherwise their max accrual will be set at the wrong amount.

 

It would be good if QB could include either a future dated hours change alongside the pay rate change, or a calculator for annual leave when hours change (rather than this having to be worked out manually - X months at Y rate, plus A months at B rate), or both.

Solved
Best answer September 28, 2022

Accepted Solutions
GeorgiaC
QuickBooks Team

Annual leave accrual when someone's hours changes

Hi susanwarren, thanks for your post and feature suggestions :) 

 

In this instance, the annual leave would need to be amended manually and entered following the steps below (please note that these steps are for QB Advanced Payroll). HMRC offer a variety of holiday entitlement calculators which you may find useful when calculating the adjustment. 

 

1. Create a New Pay Run or make your adjustment in the next scheduled pay run.
2. Open the employee's pay run record by clicking on the employee name within the pay run.
3. Select the Action button at the bottom right hand corner of the screen and then select adjust leave

4. Adjust the leave accordingly - remember, this is a leave adjustment so a negative adjustment will take leave (meaning reduce the leave balance), a positive adjustment will add to the leave balance. 

5. Depending on the leave category settings, and if the Apply Earnings Rules box is ticked, the leave adjustment will create a line in the earnings of the employee indicating that annual leave has been adjusted.

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3 REPLIES 3
GeorgiaC
QuickBooks Team

Annual leave accrual when someone's hours changes

Hi susanwarren, thanks for your post and feature suggestions :) 

 

In this instance, the annual leave would need to be amended manually and entered following the steps below (please note that these steps are for QB Advanced Payroll). HMRC offer a variety of holiday entitlement calculators which you may find useful when calculating the adjustment. 

 

1. Create a New Pay Run or make your adjustment in the next scheduled pay run.
2. Open the employee's pay run record by clicking on the employee name within the pay run.
3. Select the Action button at the bottom right hand corner of the screen and then select adjust leave

4. Adjust the leave accordingly - remember, this is a leave adjustment so a negative adjustment will take leave (meaning reduce the leave balance), a positive adjustment will add to the leave balance. 

5. Depending on the leave category settings, and if the Apply Earnings Rules box is ticked, the leave adjustment will create a line in the earnings of the employee indicating that annual leave has been adjusted.

susanwarren
Level 2

Annual leave accrual when someone's hours changes

Hi Georgia

 

Thank you for your reply - that is what I had assumed, as I couldn't find any other way forward for this. I'm going to build a program for my payroll staff to use which does the calculations for us, so that we know what the adjustment should be each time, and have a saved record of each change.

 

It would be a great feature for QuickBooks to add at some point, to be able to put in the date that someone's hours change, and what they change to, and have QB tell you what the leave entitlement needs to change by!

 

GeorgiaC
QuickBooks Team

Annual leave accrual when someone's hours changes

Thanks for getting back to me susanwarren - that sounds like a great way to stay on top of calculations and leave adjustment changes. I agree that this would be a handy feature to have built into the payroll software as I'm sure its a common occurrence for a lot of companies, so I'll be sure to submit a feedback request to our development team. :)

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