You can manage leave without pay by creating leave categories that do not track the leave balance for an employee. This means you can create leave categories that employees are eligible to apply for without needing to accrue the leave first. You can also backdate a LWOP request by using the calculation in the below accordion.
To start using leave categories without tracking leave balances, follow these simple steps:
- From the 'Business' menu, click 'Settings' and under Pay Run Settings click 'Leave Categories'
- If a 'leave without pay' category is not already there, create a new leave category and under the 'Employee leave balance' select list, choose 'Not Tracked' and click 'Save'.
Now when a leave request is created using a leave category without a tracked balance, the leave balance is not checked
When this leave request is applied in the pay run, there’s no associated balance that is updated, and in the pay run there are no warnings about employees not having enough leave.
- Log into your payroll platform.
- Click on Pay Runs.
- Select your pay run time period.
- Click on the employee taking LWOT.
- Ensure that the manager has approved the employee's LWOT request. Once they have, you will see the LWOP request in the pay run.
The calculation works as follows:
Salary of the month of LWOP request/number of working hours for the month of LWOP request x number of LWOP hours = LWOP deduction.
Above will apply to LWOP deduction for:
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Salary
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Additional earnings in pay run inclusion if the additional earnings incomplete month calculation option is set to The earning is pro-rated based on incomplete month formula.
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