The application allows for Pay in Lieu (of Leave Taken) transactions i.e. the employer ‘buys out’ an employee’s unused Leave at full price or at a negotiated price. Once a Pay in Lieu transaction is entered, the employee’s leave balance is affected and is adjusted accordingly.
This feature is useful when an employee is leaving the company has to be paid for unused Vacation Leave.
Before we can enter Pay in Lieu records, however, there are a few prerequisite steps:
- Setup the Pay in Lieu Transaction-Payroll Link. Navigate to: POWERpay>> Process Payroll>> Employee Transactions>> Transactions-Payroll Linkages OR Personnel>> Personnel>> Transactions
- Setup the Leave-Payroll Link
- Ensure that the employee has an active Pay Profile record (POWERpay>> Employees>> Pay Profile)
POWERpay>>Process Payroll>>Employee Transactions>>Transactions-Payroll Linkages
STEP 1 : Enter the Transaction-Payroll Linkage (if not already done)
- This will allow for the application to calculate the employee’s Pay in Lieu.
Remember, Transaction-Payroll Linkages must be created for each Pay Group.
POWERpay>>Employees>>Pay Profile
STEP 2 : Ensure that the employee has an Active Pay Profile Record
Navigation: Benefits>>Leave>>Leave Transactions>>Pay in Lieu of Leave Taken
STEP 3: Select New Record and enter the fields accordingly.
Click on the diskette icon to save
Number of Days Bought: Enter as per the agreement with the employee.
Percent to Apply: Days can be bought at 100% of the value (the employee’s hourly rate x the number of days bought x the number of hours per day ) or at any percentage agreed upon by the employer and employee.
Cycle to Pay Employee: Enter accordingly.
STEP 4 : Post the Record
Posting the record triggers an entry into the Cycle Changes for the Cycle selected so that the employee can be paid. Note, you cannot update, delete or unpost a posted Pay in Lieu of Leave record. All changes must be done before the record is posted. Once the record is posted, it will be archived and you will not be able to make changes
Once successfully posted, the application will notify you.