The RDO Accumulated Amount in an employee's RDO Details is based on the employee’s rate at the time the RDO Deduct or Pay occurred. When an employee receives a rate change, the amount will not recalculate based on the new hourly rate. This means that the RDO Accumulated Amount will differ from the RDO Accumulated Hours multiplied by the employee’s current hourly rate.
When the next transaction is entered, the hourly rate used for the RDOs will be the employee’s new hourly rate. This can result in an employee having positive Accumulated Hours but negative Accumulated Amount for RDO.
For example:
an employee accumulates 2 RDO Deduct Hours per pay over three periods, deducted at $31.3750, totalling an Accumulated Amount of $188.25.
the employee receives a pay increase to $35.0000 per hour.
the Accumulated Amount is still $188.25 after the increase.
When a new transaction is processed RDO Pay and RDO Deduct are based on the new hourly rate of $35.0000.
the RDO Deduct is 1.6 hours at $35 per hour, equaling $56
the RDO Pay is 7.6 at $35 per hour, equaling $266
After the pay end is completed, the Accumulated Amount in the RDO details will show as a negative amount for the example.
$188.25 (Accumulated Amount at the old rate) + $56 (RDO Deduct at the new rate) - $266 (RDO Pay at the new rate) = -$21.75
Employee record
To update the RDO Accumulated Amount:
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee.
Select RDO Details.
Manually update the Accumulated Amount to equal the Accumulated Hours multiplied by the employee's current rate.
Click OK.
Terminations
The RDO Accumulated Amount will appear under Total ETP Components screen in a Termination Transaction, if Pay out on Termination is ticked in the RDO Class (Payroll, Maintenance, Leave).
If the employee received a pay increase and the RDO Accumulated Amount was not updated to reflect the new rate, then the Amount may be incorrect in the Termination.
To update the Amount on the Termination, either enter the hours or the rate again. This will recalculate the Amount to be paid.
Employee RDO Report
The Employee RDO Report (Payroll, Reports, End Of Pay) will also reflect the Amount that is displayed in the employee’s RDO Details screen at the time the report is printed.