Annual Leave can be configured to accrue at the greater of Average Weekly Earnings (AWE) or Ordinary Weekly Pay (OWP). This utilises the Accrual Movements feature, which allows the cost of accrual balances to automatically adjust to a newly calculated Holiday Pay rate in each pay run.
Setup
If you are not currently using the Accrual Movements feature, please read the Accrual Movements Help Centre article and follow the setup instructions.
Update the Annual Leave accrual type to now accrue at the Max of AWE and OWP:
In the Admin, Configuration, Accrual Types:
Tick the Accrue at Max of Average Weekly Earnings and Ordinary Weekly Pay checkbox.
Click Save.
Processing
Once this feature is enabled, pay run calculations will determine the total cost of employee Annual Leave balances using the Max of AWE and OWP rate and generate Annual Leave Movements when required.
Navigate to Admin, Payroll, Payruns.
Example
Prior to enabling this feature, employee accruals were valued at the Pay Policy Rate.
2. Navigate to Reporting, Accrual Reporting, Accrual Liability.
After enabling, employee accruals are now valued at the ‘Max of AWE and OWP’ and will update after an employee is calculated in a pay run.
As we are now adjusting the total cost of employee accruals to the Max of AWE and OWP, an Accrual Movement is then required to reach the Total Adjusted Value of $10,590.32.
3. Navigate to Reporting, Accrual Reporting, Accrual Balances.