leave pay and year end procedures end 2018.… · leave pay and year end procedures melissa lubbe...

Leave Pay and Year End Procedures

Melissa Lubbe

13/11/2018

Good afternoon and welcome to this Online

Information session. The session will start at 14h00 -

you will only be able to hear sound from 14h00 (so

please make sure that your speakers are on and

working). Questions may only be asked during the

Q&A session - after the presentation - using the CHAT

block and not the Q&A block. Please do not ask any

questions now. Thank you for your support and

attendance.

The Session will begin with a presentation

- The session will last for 25 to 30 minutes and will include:

• This PowerPoint presentation

• Voice communication from the instructor, therefore the sound on your computer

must be switched on

The Q&A session will start after the presentation

- Questions may only be asked during the Q&A session

• Only questions related to the content may be asked

• The Q&A session will be 30 minutes, as the meeting will end at 15:00

11/13/2018 2

Introduction

1. Leave Pay Introduction

2. Leave Pay Example

3. Leave Pay Setup

4. Activate and Deactivate Leave Pay

5. Additional Pay Run

6. Medical Aid Table Updates

7. Public Holidays 2019

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Content

Leave Pay Introduction

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Leave Pay

• The Leave Pay function allows a user to pay an employee in advance for a period of

annual leave.

• Leave pay is not used or activated for employees who are paid monthly, therefore the

leave pay function cannot be activated for employees linked to company rules where the

payment cycle is equal to:

o Monthly

o Custom

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The following will happen when leave pay is activated:

• The future payslip values are calculated in advance and paid out in the current pay

period.

• The correct tax calculation is done (tax is spread over the leave period but deducted in

the current pay period).

• The leave transaction can be captured for the annual leave to be taken (Optional).

• The Payslip Screens are frozen for the Leave Pay period which is for the duration the

employee will be on Annual Leave.

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The following areas in the system will be affected:

• Company Rule

• Employee

• Calculations

• Leave

• Payment run

• Reports

Leave Pay Example

Leave Pay Example

Leave Pay is activated for the employee for 3 weeks during week ending 14/12/2018 week 2

of 4 in December and 41 of 52 in the Tax Year.

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Leave Pay Example

Last Period

Worked

1st Period on

Leave

2nd Period on

Leave

3rd Period on

Leave

Employee

Returns

Period End date 14/12/2018 21/12/2018 28/12/2018 04/01/2019 11/01/2019

Period in Month 2 of 4 (Dec) 3 of 4 (Dec) 4 of 4 (Dec) 1 of 4 (Jan) 2 of 4 (Jan)

Period in Tax Year 41 of 52 42 of 52 43 of 52 44 of 52 45 of 52

Payslip Status Active Frozen Frozen Frozen Active

• Employees payslip screen before leave pay is activated.

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Leave Pay Example

FixedRecurring

AmountAmount

Leave Pay

AmountTotal

Earnings

Basic 2500.00 0.00 0.00 0.00 2500.00

Travel 1000.00 0.00 0.00 0.00 1000.00

Overtime 0.00 0.00 285.16 0.00 285.16

Annual Bonus 0.00 0.00 0.00 0.00 0.00

Deductions

PAYE 450.00 0.00 0.00 0.00 450.00

UIF 31.20 0.00 0.00 0.00 31.20

Pension 187.50 0.00 0.00 0.00 187.50

Loan 0.00 250.00 0.00 0.00 250.00

Canteen 0.00 0.00 125.00 0.00 125.00

Company Contributions

SDL 37.85 0.00 0.00 0.00 37.85

UIF 31.20 0.00 0.00 0.00 31.20

Parking 50.00 0.00 0.00 0.00 50.00

• Employees payslip screen after leave pay is activated.

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Leave Pay Example

FixedRecurring

AmountAmount

Leave Pay

AmountTotal

Earnings

Basic 2500.00 0.00 0.00 7500.00 10000.00

Travel 1000.00 0.00 0.00 3000.00 4000.00

Overtime 0.00 0.00 285.16 0.00 285.16

Annual Bonus 0.00 0.00 0.00 0.00 0.00

Deductions

PAYE 450.00 0.00 0.00 1800.00 2250.00

UIF 31.20 0.00 0.00 62.38 93.58

Pension 187.50 0.00 0.00 562.50 750.00

Loan 0.00 250.00 0.00 500.00 750.00

Canteen 0.00 0.00 125.00 0.00 125.00

Company Contributions

SDL 37.85 0.00 0.00 105.00 142.85

UIF 31.20 0.00 0.00 62.38 93.58

Parking 50.00 0.00 0.00 150.00 200.00

Leave Pay Setup

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Leave Pay Setup

• Leave pay settings are defined per company rule and applies to all employees linked to

the company rule.

• On the company rule detail screen you can select whether normal or late leave pay is to

be used and to which payroll definition types the leave pay rules must be applied.

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Leave Pay Setup

1. Company Rule Details – Leave Pay Type

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Leave Pay Setup

Select whether late or normal leave pay must be used for the company rule. The options

are:

• Normal Leave Pay: Normal leave pay is activated in the pay period before the

employee’s leave commences. When rolling over, all payslips in the pay period

immediately following the leave pay activation period will be frozen and not allow any

input or calculate any values. The payslips will remain frozen for the number of periods

selected when leave pay was activated.

• Late Leave Pay: Late leave pay is activated where the company capture the input one

period in arrears. Late leave pay is also activated in the pay period before the employee’s

leave commences.

The difference is that payslips in the pay period immediately following leave pay activation

period will still be active and the system allows input and calculates all values. When

rolling into the next pay period all payslips for that pay period will be frozen and remain

frozen for the number of periods selected when leave pay was activated.

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Leave Pay Setup

2. Company Rule Details – Multiply Payroll Definitions

• You may select which payroll definitions must be multiplied by the number of leave pay

periods activated for the employees. The fixed and recurrence amounts will be multiplied

by the number of leave pay periods.

• If you do not want to use the leave pay activation on the Sage 300 People application you

must add leave pay specific calculations for payroll definitions.

Note: The flags on the company rule will always override any leave pay specific calculations

that are linked to a definition.

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Leave Pay Setup

Select the Payroll

Definitions to

Multiply by Leave

Pay Periods

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Leave Pay Setup

3. Company Rule Details – Pay Run

• Allow Leave Pay: Check the check box if leave pay values must be calculated when

leave pay is activated.

• Separate Payslip On Leave Pay: Check the check box if leave pay must be displayed

on a separate payslip.

Allow Leave Pay Separate Payslip On Leave Pay

Activating and Deactivating Leave Pay

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1. Employee Detail – Individually Activate Leave Pay

• Leave pay can be activated individually for employees or by using the bulk employee

update function.

• When leave pay is activated the system prompts you to enter the number of leave pay

periods and whether a leave transaction must be created automatically.

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1. Click on the

Leave Pay

button to

activate

Leave Pay

2. Enter Leave

Pay Periods

and Leave

Transaction

Information.

3. Click on OK

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Leave Pay

is now

activated

11/13/2018 23


2. Employee Detail – Bulk Activate Leave Pay

• With Bulk Leave Pay Activation you will have the option to activate bulk leave pay

transactions.

• On the Navigation pane

- Expand Utilities

- Expand Bulk Employee Update

- Double click on Activate Leave Pay

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• Apply the required filters and click on Refresh and Search.

• Click on Update at the top of the screen and complete the next screen as required.

Filter on

employees

that Leave

Pay must be

activated for

11/13/2018 25


3. Return Early from Leave Pay (Deactivating Leave Pay)

• To cancel leave pay on an individual employee, click on the Leave Pay button on the

payslip detail screen. Leave Pay can also be cancelled in bulk using the bulk activation

functionality.

• Cancelling Leave Pay in the same pay period as it was activated:

o If leave pay is deactivated and a leave transaction was created the leave

transaction will be deleted.

• Cancelling Leave Pay in a pay period after it was activated:

o If you cancel leave pay in a period after leave pay was activated and a leave pay

transaction was created, you will have to manually delete the leave transaction. You

must create a new leave transaction with the correct leave dates.

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• Leave pay can only be cancelled for employees which currently have leave pay activated.

• The normal payslips will be active and the values will be calculated.

• The leave pay payslip remains active but no values will be calculated. The amount

column will be enabled and allows you to capture any adjustments that may be

necessary.

• Forced average tax will be cancelled and the tax calculation option on the employee’s tax

definition will be used again.

• UIF will be calculated normally and the UIF earnings limit will be applied.

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Rules for cancelling Late Leave Pay

• Because the employees are paid in arrears, leave pay will not be deactivated in the

period that the employee returns. The employees will be paid for the hours captured in

the first period in which leave pay was activated.

• The normal payslips will be active and the values will be calculated. It is your

responsibility to reverse any amounts that should not be calculated.

• The leave pay payslip will remain active but values will not be calculated. Only the

Amount column will be available in which adjustments can be made.

• Forced average tax will be cancelled and the tax calculation option on the employee’s tax

definition will be used.

• UIF will be calculated normally and the UIF earnings limit will be applied.

11/13/2018 28


Return Early from Leave Pay and Custom Calculations

Please book a consultant to assist with the following Leave Pay scenarios:

• When leave pay needs to be cancelled. Cancelling leave pay will affect Tax and

Company Contributions. If it isn’t done right it could have great implications in the payroll.

• If you do not want the Sage 300 People application to automatically apply the leave pay

calculation, custom calculations that would calculate the leave pay amounts needs to be

created.

Additional Pay Run

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Additional Pay Run

• Additional Pay Runs might be required at year end to do a Bonus run that is separate

from the normal main run.

• Each additional run will also have its own payslip.

1. Company Rule

Click on Pay Run Definition

and then on the New

Button to add a new Pay

Run

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Additional Pay Run

• Add the Bonus Earning Definition to the new Pay Run and fill in all other details.

• Tax, UIF and SDL Definition Lines will be linked by default.

Add the Bonus

Earning

Definition Line

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Additional Pay Run

• After the Pay Run is added, Generate Pay Periods for the new Pay Run and then

recalculate on the Company Rule.

Recalculate the

Company Rule

Generate Pay

Runs

11/13/2018 33

Additional Pay Run

2. Remuneration Definition

• If your company rule use Remuneration Structures, the Bonus Pay Run must be added

on the applicable Remuneration Definition.

Add the Bonus

Pay Run

Definition

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Additional Pay Run

3. Payslip Definition

• If no Remuneration Structures are used, link the Bonus Pay Run on the Payroll Definition

Screen.

Add the Bonus

Pay Run

Definition

11/13/2018 35

Additional Pay Run

4. Employee Detail

• Ensure the Bonus Pay Run is selected before doing input for this Pay Run.

Select

Bonus Pay

Run

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Additional Pay Run

Useful Tips

• Do the Bonus Run input before the Main Run. Mark the Bonus run as processed. This will

ensure that no input on the Main Pay Run will affect the tax on the Bonus Run.

• If both Pay Runs are open and input is done simultaneously the tax will recalculate

across the Pay Runs.

Medical Aid Table Updates

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• Medical aid tables must be updated in January before the January Pay Run is completed.

• Ensure that you obtain the latest medical aid tables from your medical aid service

provider.

Go to Medical Aid Setup

and select the plan you

need to update

11/13/2018 39


• Select each medical aid plan and complete the Risk and the Saving contribution.

Select the medical aid

plan

Change Risk and Savings

contributions according to the new

medical aid tables

11/13/2018 40


Table Lookup

• Certain medical aid plans’ contributions are based on salary e.g. Discovery KeyCare.

Plans like these use Table Lookup Calculations set up. This also needs to be changed.

Add a new

Table Lookup

calculation

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Custom Calculations

• Certain medical aid setups also makes use of Custom Calculations. E.g. Vitality.

Vitality amounts

needs to be

changed each

year

Public Holidays

11/13/2018 43

Public Holidays

• Update Public Holidays before January input is completed, as it could affect Leave

transactions.

• Only Public Holidays which are not on the same date every year should be updated

annually with the new date e.g. Good Friday. These dates can also be updated using an

excel sheet.

Change

Public Holiday

dates on the

Company

Rule

Thank you for attending this session

Please send any feedback or

suggestions to:

[email protected]

The Q&A session will now begin……

Please use the Chat block

to ask your questions, and

not the Q&A block.

mailto:[email protected]

© 2017 The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its

licensors. All other trademarks are the property of their respective owners.

Thank you

leave pay and year end procedures end 2018.… · leave pay and year end procedures melissa lubbe...

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