What is FBAPS?
Family Violence and Bereavement Leave, Alternative and Public Holidays, and Sick Leave are commonly referred to as FBAPS.
How should FBAPS be paid?
As per the requirements set out in the Holidays Act 2003, FBAPS leave must be paid at the Relevant Daily Pay rate. If it isn’t possible or practicable to determine Relevant Daily Pay, or if the employee’s daily pay varies within the pay period when the holiday or leave falls, the employee’s Average Daily Pay rate may be used instead.
What is Relevant Daily Pay (RDP)?
Relevant Daily Pay is the amount the employee would have received if they had worked on that day, and it includes:
productivity or incentive payments, including any allowances, commission or
piece rates, if those payments would have been received had the employee worked
overtime payments
the cash value of board and lodgings provided.
It doesn’t include payment of employer contributions to superannuation schemes for the benefit of the employee, or reimbursements payable to the employee, or in general, non-taxable allowances.
What is Average Daily Pay (ADP)?
Average Daily Pay is the daily average of the employee’s gross earnings over the past 52 weeks. It is the employee’s gross earnings divided by the number of whole or part days the employee either worked or was on paid leave or holiday during that period.
Setting Up
Review which pay items should be included in ADP and RDP calculations.
You may use the Pay Items report to view all pay items in your organisation and which calculations they are included in. Navigate to Reporting, Company Reporting, Pay Items.
Refer to Employment New Zealand information on what is to be included in each calculation.
Update applicable pay items using the relevant checkboxes shown below in
Admin, Structure, Pay Items.
Note: For Allowances that are assigned to employees by the Additions feature, you should not include these in the Relevant Daily Pay calculation, as these are automatically paid and spread out over the employee’s working/leave days. If you do configure them to be included in the RDP calculation, this will cause the allowance to be paid to the employee twice.
3. Create a new version of your award policies to pay FBAPS leave at either ADP or RDP by default in Admin, Policies, Award Policies.
Processing
When processing payroll, for the leave types that are configured to pay ADP or RDP by default, a Leave Calculations tab will be available when viewing employees who have taken that leave in the pay run. Both pay rates will be displayed for each period of leave taken.
Definitiv will Auto Select the pay rate you have configured in the employee’s Award Policy. You can change the calculation if required by clicking the Apply This Rate button on the alternative pay rate.
Pay run messages will be generated to advise which pay rate has been used.
Once the pay run has been published, the decision of the rate used for that leave cannot be changed. Retrospective changes to alternative calculation methods will need to be performed manually.
Note: Once a leave application has been calculated in a draft pay run, if the default pay rate for that leave type is changed in the Award Policy (for example, from RDP to ADP) and the pay run recalculated, it will not update the Auto Selected indicator. It will be required to manually change the pay rates for those leave applications already calculated in that pay run.
Note: In Definitiv v1.24.26 and earlier, Annual Leave was displayed in an Annual Leave Calculations tab. From v1.24.27 onwards, Annual Leave will now also be displayed in this Leave Calculations tab.