Navigation: Leave>> Leave Setup>> Leave-Payroll Links
Leave-Payroll Link
The Leave-Payroll Links allows you to define the payment rules (full pay, first, second and third factor) at which employees in a pay group are paid for specific leave types.
A leave taken transaction must then be entered for the employee. The employee’s Pay Rate (Payroll>>Employees>>Pay Profile) is then used to calculate the amount and cycle changes will be automatically generated in the relevant pay cycle, when the employee’s leave record is posted.
How it works:
- Set up an earning for the leave for which you wish to pay via Payroll >>Maintenance>>Payroll Setup>>Earnings. ( The user must have access to the Payroll Module to setup earning codes.) Click on the link to access the guide How to create an Earning Type?
- Using the code defined for the earning, set up an HR Payroll link via Personnel >> Transactions >> Transactions-Payroll Linkages.
- Define the Payment Rules for the leave type.
- Enter and post leave taken records for relevant employees.
- To effect the payment rule, perform a recalculation to the present date (Leave Transactions>>Recalculate Leave Balances). The Recalculate Until date field should be blank.
- Go to Cycle Changes, find the relevant pay cycle and view the relevant cycle changes.
- Process the cycle changes as you normally would.
To undo the Payment Rule:
- Delete the payment rule.
- Perform a recalculation. (Leave Transactions>>Recalculate Leave Balances). The Recalculate Until date field should be blank.
Please DO NOT use this screen for Maternity Leave for Salaried Employees. To see how we manage those employee maternity leave payments, please use the article below:
How can I manage Maternity Leave Payments for Salaried Employees?
Enter New Leave-Payroll Link
Enter Leave-Payroll Link Details
Company Code/Name: Select the name of the company using the drop-box.
Pay Group/Pay Group Name: Select the Pay Group to which the linkage is to be applied.
Leave Code/Description: Select the Leave Type Code (that you would have previously built) for which you are setting up the Payroll Link.
Payroll Code/Description: Select the Payroll Code for which you are setting up the Leave Link.
Link Description: Give the Link you are building a name.
Apply Link to Full Time/Part-Time: You can choose if this Link is applicable to All employees within the Pay Group, Full Time only employees or Part Time only employees.
Apply Link to Salaried/ Non-Salaried: You can choose if this Link is applicable to All employees within the Pay Group, only Salaried employees or only Non-Salaried employees.
Payment Rules
Payment Rules
Units: Indicate whether the Leave Type for which the Link is being built is one that is based on hours or days
Number of Hours in a Day: Indicate how many hours make up your Company’s standard work day for the chosen Pay Group e.g. 8, 7.5, 10 etc. (Note, the default value is 8).
Limit Full Pay To: Indicate how many days of Full Pay the employee will be entitled to when on this Type of Leave. This is especially useful in instances where employees take more Vacation Leave than what they are entitled to. You can manipulate the application to not pay the overage or to pay the overage at a reduced amount.
In this example, we have set the application to Limit Full Pay To 15 days.
Apply 1st Factor of: Indicate the Pay Factor that you wish the application to calculate the employee’s Pay in the event that his/her Leave Taken goes over the amount of days stipulated at Full Pay. Note, the Factors are calculated up to 4 decimal places.
Then apply 2nd Factor of: Indicate the next Pay Factor level (as per your company’s Leave Policy) that you wish the application to calculate the employee’s Pay in the event that his/her Leave Taken goes over the amount of days stipulated at the 1st Factor Level.
Then apply 3rd Factor of: : Indicate the next Pay Factor level (as per your company’s Leave Policy, if applicable) that you wish the application to calculate the employee’s Pay in the event that his/her Leave Taken goes over the amount of days stipulated at the 2nd Factor Level.
Pay as Lump Sum: You can choose if the Payment is to be given as a Lump Sum or if it will be made each cycle (if the employee’s Leave straddles multiple Cycles).
Status: For the calculations to take effect the Status of the Linkages built must be set to Active.