You can set up a User Defined Leave class to accrue hours for when employees bank extra hours instead of being paid overtime. You include the hours to accrue in a transaction and these will update the employee record either when you use the update leave process or end of pay.
There are three steps to setup leave to accrue Time in Lieu hours. They are:
An Addition to enter the Time in Lieu hours against.
A User Defined Leave class to accrue the Time in Lieu hours.
Attaching the User Defined Leave class to the employee.
In addition, this article will provide instructions on how to enter the hours to be accrued and how to pay out the Time in Lieu hours.
Set up the Addition
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter a Code, Shortcut Key, and Description.
Select Addition Before Tax as the Category, and Percent as the Type.
Leave the Percent field blank. This allows for the hours to be entered through a transaction without calculating a value.
Tick Specify Hours in Transaction.
Click OK.
Set up the User Defined Leave
Go to Payroll, Maintenance, Leave, User Defined Leave.
Click Add.
Enter a Code and Description.
Choose Based on Hours Worked as the Method.
Select a Leave Reason. If one doesn’t exist, right-click and select Add New. This will open the Add New Leave Reason window. Enter a Code and Description. Leave the Leave Type as User Defined Leave. Complete any other details and click OK.
In the Additions field select the Addition created above. Hour Types should be (None).
Enter 100.00 in the Accrual Rate. This means that 100% of the hours entered for the addition in a timesheet will accrue.
Enter the maximum each period that can be accrued and choose the appropriate options in the Other section.
On the Termination/Pay Advice Rules tab, tick Pay Out at Termination if you want the balance of Time in Lieu hours included on the termination transaction. Choose the Type of Payment (e.g. ETP) and which hours to include in Termination Payout. If you select ETP, the hours will be added to the Unused RDO hours in the Termination Transaction.
In the Pay Advice section, use Include on the Pay Advice to determine where (it at all) the hours will be included.
If you select Yes, Balance Description will be available. Enter the description you want to show on pay advices.
Click OK.
Attach the Time in Lieu Leave class to the Employee
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Select Leave and click Add.
On the New Employee Leave window select User Defined Leave as the Leave Type.
Then choose the User Defined Leave class created above.
If a balance already exists before setting this up in MicrOpay you can add this now. Hours accrued in a previous entitlement year(s) should be added to Entitlement. Hours accrued in the current Entitlement year can be added to Prorata. The Entitlement and Prorata dates can also be updated. The Entitlement Date should reflect the last entitlement anniversary and the Prorata Date should reflect the date that leave has been accrued to.
7. Change the Cost Account if necessary.
8. Click OK on the Employee Leave window and then click OK again.
Accrue the Time in Lieu Hours
Once the Time in Lieu leave class has been attached to the employee you can enter any hours to be accrued using the addition created above in Transactions (Timesheet, Manual Calculation or Transaction Adjustment). As the percentage was left blank no value will be calculated (or paid) but the hours will be added to the employee’s balance when leave is updated.
Pay Out Time in Lieu Hours
When the employee wants to take Time in Lieu add a User Defined Leave line to the transaction, select the leave class, reason and enter the hours, start date and end date.
After the end of pay has been completed the Taken Hours on the employee’s record will be updated and the employee's balance reduced.