New Zealand Leave Payment

To set up Preceda in order to calculate the Annual Leave Payments for employees based on the requirements of the New Zealand Holidays Act, the highest among four different rates are stored into the Rate for Annual Leave where it can be used to calculate Annual Leave.

The Rate for Annual Leave is determined by comparing the employee's hourly Base Pay Rate, the Ordinary Pay Rate, Average Rate 1, and Average Rate 2. The highest value among the four is used for the employee's Rate for Annual Leave.

 

Pay Rates Value
  • Base Pay Rate
 41.6007
  • Ordinary Pay Rate
42.2257
  • Average Rate 1
 48.7509
  • Average Rate 2
 35.5607
  • Rate for Annual Leave
 48.7509

 

  1. Setup an Ordinary Pay Code Record.
    The setup of the Ordinary Pay is used to link between employees and the earnings which are to be linked for the purposes of calculating an Ordinary Pay Record.
  2. Use the Linked Earnings window, to link the required earnings codes to the Ordinary Pay Record.
    Allowance/Deduction Codes are used to add to an Ordinary Pay Code record.
  3. Setup an Average Rate Rule to be used as part of the processing of Annual Leave Calculations. One for a 4 week average and one for 52 week average.
  4. Add the Average Rate Code or the Ordinary Pay Code created to the employee Payment Details window.

  5. Add Rate for Annual Leave as the Pay Rate To Use on the Hours Type Code used for processing Annual Leave.

  6. After the Calculate Average Rates process has run, the determined Rate for Annual Leave is displayed on the employee's Other Payment Details screen.

     

    NOTE: Since the Ordinary Pay Rate is used to determine the Rate for Annual Leave, the Calculate Ordinary Pay process should be run prior the Calculate Average Rates process.

 

To set up an alternative calculation comparing two Pay Rates, Calculation Methods can be used.

  1. Setup a Calculation Method to use the Average Rate or the Ordinary Pay Rate.
    Two calculation methods must be put in place which are then set to compare to one another.
    Even though there is one Ordinary Pay code or Average Rate code setup, only one Calculation Method is needed.
    The first step is to setup a calculation method to use the Average Rate Rule in the Pay Rate to Use field.
    The second step is to setup a calculation method to use the Ordinary Pay Rate in the Pay Rate to Use field.
    The third step is to go back to the first calculation method and add the comparison to the second calculation method. Enter a G in the Use Greater or Lessor of field. This means that the calculation method which results in the higher rate of pay will be used.
  2. Add the calculation method to the Hours Type Code used for the Leave, if the calculation method is to be used for all employees who are paid with this code. On the Hours Type code, set the Default Calc Method to point to the first calculation method that holds the comparison to the second Calculation Method.