Payment for annual holidays is generally paid at the rate using the greater of:
- the ordinary weekly pay at the start of the holiday, or
- the employee’s average weekly earnings (AWE) for the 12 month period just before the end of the pay period before the annual holiday is taken.
The purpose of importing historic gross earnings is to assist in determining the AWE when an employee takes annual holidays, especially where the business has moved to a new payroll system.
N.B. The Historic Gross Earnings export has no impact or relationship at all with employee YTD earnings for the current financial year. If you wish to import employee YTD earnings refer to the Opening Balances import.
There are 2 ways of accessing the historic gross earnings export from the payroll dashboard:
- Payroll Settings tab > Data Extracts (listed under the Business Management heading) > Data type = Historic Gross Earnings; or
- Payroll Settings tab > Opening Balances (listed under the Business Settings heading) > Export = Historic Gross Earnings.
Regardless of the method used, you will be given the option of exporting the template containing the column headers and either:
- active employees only,
- active and terminated employees, or
- no employees.
Once you have selected the appropriate data type and file format, click "Download".
Understanding how the Historic Gross Earnings template works
When you export the template, you will notice there are 3 worksheets that cover each payroll frequency: weekly, fortnightly and monthly:
Your employees will be assigned to the relevant worksheet based on the pay schedule they are assigned to. Although you may not have each pay schedule setup in the business, the reason we include all three pay frequencies is to cater for scenarios where employees may have been paid at a different frequency during the 52 week period.
If you have exported the template containing employees, the first 4 columns will be pre-populated using the data contained in the system.
The next column "Last Period Ending" relates to the period end date of the last pay run that was processed in the business's other payroll system. Once this date is entered, each "Period x Ending" column will pre-populate based on the value of the "Last Period Ending" field and the pay run's frequency. Any manual override of these values will cause an import error as follows:
This will need to be rectified and reimported to ensure the employee's AWE are calculated correctly.
The next column to discuss is "Period x Gross". In these columns you must enter the employee's gross earnings that would constitute average weekly earnings. As per legislation, AWE does NOT include (unless the employment agreement says otherwise) the following:
- reimbursement payments;
- truly discretionary or ex gratia payments;
- payments for cashed-up holidays;
- payments made by ACC; or
- payments when an employee is on voluntary military service.
Each gross earnings amount MUST be separated by pay period otherwise the employee's AWE will not be correctly determined. This is important because as each pay period passes where the business has been using this payroll system to process pays, the less of the information that will be needed from the historic gross earnings export. For example, assuming the business runs a weekly pay run. The first pay run in this payroll system has an employee that has taken annual holidays - to properly calculate the higher of AWE and ordinary weekly earnings, the system will require the full 52 weeks of historic gross earnings. Then, when the fourth pay run processed in this payroll system has an employee taking annual holidays, the system will require 49 weeks of historic gross earnings to accurately calculate the employee's AWE.
The only exception to the above point is where an employee has worked with the company for less than 52 weeks. In that case, you would only enter data for each pay period the employee has been paid.
The last column to discuss is "Period x Hours". In these columns you must enter the number of hours worked/paid by each employee for each relevant pay period.
Importing the Historic Gross Earnings template
Once you have completed all the fields, you can import the template from the Opening Balances (business settings) screen. Click on the "Export" button located on the top right hand side and then select the "Historic Gross Earnings" option from the dropdown list.
Then, click on "Select file" > select the file from your computer > click "Open" > click "Confirm upload?".
If your file includes employees on each worksheet (pay frequency), you must ensure all worksheets are completed. Otherwise, you will receive the following error:
If you want to import each worksheet separately, you can do so by moving the worksheet to a new spreadsheet.
Once the file has been imported, a status summary will be displayed:
When importing historic gross earnings, employee records are matched according to the following criteria (in order of priority):
- If there is an IRD Number specified and it is not '111111111', then we'll use the IRD Number to match the employee;
- If there is an External ID specified, then we'll use the External ID to match the employee;
- Otherwise, we will use the combination of IRD Number AND name to match the employee.
If you want to use this import file to remove data from the opening balances, in bulk, you'll need to enter the value "0" (without the quotes) in the "Period x Gross" and "Period x Hours" fields on your import file. This will revert the figure back to zero once the import is complete.
If you have any questions or feedback please let us know via firstname.lastname@example.org.