Automated Payroll Leave Accruals and Payments Accuracy
This year, we have heard of many FWO and the Wage Inspectorate investigations into workplace leave that have revealed substantial underpayments, with substantial back payments and penalties applied.
Small companies and some of the top 100 companies in Australia were caught in this web. How can this be?
Leave accruals in awards are based on several variables, including the definition of Ordinary Times Earnings (OTE) and the amount to be accrued and paid for each leave.
Another factor impacting leave accruals and payments is they are based on days and where employees work different times across the days each week rather than the same hours each day and the same days each week. Inzenius is truly automated payroll with inbuilt rostering, timekeeping, award, and leave interpretation payroll all-in-one system. #ThatsInzenius #Payroll
For example,
Long Service Leave
Long Service Leave (LSL)is to be accrued over many years, and the employee’s hours may have changed multiple times. Therefore, the most accurate accumulation of LSL is based on the hours of each day worked applied based on the definition of OTE. This negates the need to recalibrate LSL entitlement by calculating the days based on each variable working day durations over the years.
When LSL is to be taken, the rostering system with a leave roster can apply the amount of leave accrual reduction based on the employee rostering days and times for each day, applying the correct payment for each pay cycle in the LSL leave periods.
In Inzenius, this leave would be selected as a time-worked leave that incorporates the OTE times worked for the accrual amount based on the set-up coefficient.
Accurate LSL accrual in Inzenius
Credit Leave
Credit leave is when an employee has added leave entitlements for working longer hours and banking a percentage to leave or working on specific day types, like weekends and public holidays.
Inzenius auto-captures these and adds the time worked at OTE to the chosen leave balance for each employee at the configured occurrences.
The key here is that the leave roster, as approved by the manager, is driving the leave accrual dynamically in the award interpretation system for payroll, removing the need for manual intervention.
Automated additional leave for weekends working in Inzenius
Credit Leave set up