When an employee needs to take leave for dates that have already been paid, you can handle the payroll adjustment automatically without needing to unlock and reprocess a past pay run. This is called Leave in Arrears.
When a qualifying leave request is approved for an already-paid period and Leave in Arrears is set up, the request is recorded as an arrears adjustment and is reconciled on the employee's next pay run.
What this help guide covers:
Requirements
Leave in Arrears is only available for employees who meet all of the following criteria:
Salaried: The employee must have an autopay salary template set up on their profile.
No auto-generated timesheets: The employee must not have the auto-generate timesheets setting enabled.
No worked shifts on the leave dates: If the employee has worked and recorded shifts in their timesheet on the days being taken as leave, the arrears adjustment cannot be applied.
Leave fits within a single pay period: The entire leave request must fall within one pay period. Requests that span two pay periods cannot be processed as arrears.
Within a recent period: The leave dates must fall within one of the two most recent past pay periods.
This feature is only available for organisations using Tanda Payroll (AU)
How It Works
When you approve a leave request for dates that fall in an already-paid pay period, it is automatically detected. The leave request is marked as an arrears adjustment and is picked up on the employee's next pay run.
When the next pay run is processed, the payslip will automatically include:
A leave line for the hours taken, paid at the same rate as the original period.
A negative earnings line reversing the ordinary salary already paid for those days.
The net gross impact is zero for a standard salaried day (the leave pay replaces the ordinary pay). If the employee's leave type includes leave loading, this will be included on top.
Leave requests created before the Leave in Arrears feature is enabled in your account will not be eligible to be paid in arrears.
Using Leave in Arrears
To turn on and start using the Leave in Arrears feature, navigate to Payroll > Settings > General Settings and turn the Pay leave in arrears toggle On.
Click Update to save changes.
Creating the Leave Request
Now, when a leave request for an eligible employee is created, and the dates fall in an already-paid period, an arrears notice will be displayed on the form:
Learn more about creating Leave Requests here.
You can check if an already-created request is an arrears adjustment on the leave request itself. It should say it has been "added to next pay run":
Leave in Arrears in the Pay Run
When you process the employee's next pay run, the arrears leave adjustment will be automatically included in the payslip.
The payslip will show:
A leave line for the hours taken:
A negative earnings line reversing the ordinary salary paid for those same hours in the prior period:
A message in the notes section of the payslip, indicating where the leave came from.
The rate used is based on what was actually paid in the original period. A salary change after the fact will not change the arrears leave amount.
FAQs
The arrears notice is not appearing on the leave form. Why not?
The arrears notice is not appearing on the leave form. Why not?
The notice only appears if the employee meets all eligibility requirements. Check the following:
The Leave in Arrears feature is enabled.
The employee has an autopay salary template set up on their payroll profile.
Auto-generated timesheets are not enabled for the employee.
No worked shifts are recorded for the employee on the leave dates.
The leave dates fall entirely within a single pay period.
The leave dates fall within the current pay period or one of the two most recent prior periods.
If the employee does not qualify, the adjustment will need to be entered manually.
What if the leave spans two pay periods?
What if the leave spans two pay periods?
The entire leave request must fall within a single pay period. If the leave spans two periods, it will not qualify for the arrears adjustment. In this case, split the leave request into two separate requests (one per period) for each part to be eligible.
The employee's salary has changed since the original pay period. Which rate will be used?
The employee's salary has changed since the original pay period. Which rate will be used?
Tanda uses the rate that was actually paid in the original period, not the employee's current salary.