Leave Pay and Year End Procedures

Transcription

1 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. Leave Pay and Year End Procedures Melissa Lubbe 13/11/2018

2 Introduction 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

3 Content 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 /13/2018 3

4 Leave Pay Introduction

5 Leave Pay Introduction 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 o Monthly Custom 11/13/2018 5

6 Leave Pay Introduction 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. 11/13/2018 6

7 Leave Pay Introduction The following areas in the system will be affected: Company Rule Employee Calculations Leave Payment run Reports 11/13/2018 7

8 Leave Pay Example

9 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. Last Period Worked 1 st Period on Leave 2 nd Period on Leave 3 rd Period on Leave Employee Returns Period End date 14/12/ /12/ /12/ /01/ /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 of of of of 52 Payslip Status Active Frozen Frozen Frozen Active 11/13/2018 9

10 Leave Pay Example Employees payslip screen before leave pay is activated. Fixed Recurring Amount Amount Leave Pay Amount Total Earnings Basic Travel Overtime Annual Bonus Deductions PAYE UIF Pension Loan Canteen Company Contributions SDL UIF Parking /13/

11 Leave Pay Example Employees payslip screen after leave pay is activated. Fixed Recurring Amount Amount Leave Pay Amount Total Earnings Basic Travel Overtime Annual Bonus Deductions PAYE UIF Pension Loan Canteen Company Contributions SDL UIF Parking /13/

12 Leave Pay Setup

13 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. 11/13/

14 Leave Pay Setup 1. Company Rule Details Leave Pay Type 11/13/

15 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. 11/13/

16 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. 11/13/

17 Leave Pay Setup Select the Payroll Definitions to Multiply by Leave Pay Periods 11/13/

18 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 11/13/

19 Activating and Deactivating Leave Pay

20 Activating and Deactivating Leave Pay 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. 11/13/

21 Activating and Deactivating Leave Pay 1. Click on the Leave Pay button to activate Leave Pay 2. Enter Leave Pay Periods and Leave Transaction Information. 3. Click on OK 11/13/

22 Activating and Deactivating Leave Pay Leave Pay is now activated 11/13/

23 Activating and Deactivating Leave Pay 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 11/13/

24 Activating and Deactivating Leave Pay 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/

25 Activating and Deactivating Leave Pay 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. 11/13/

26 Activating and Deactivating Leave Pay 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. 11/13/

27 Activating and Deactivating Leave Pay 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/

28 Activating and Deactivating Leave Pay 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. 11/13/

29 Additional Pay Run

30 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 11/13/

31 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 11/13/

32 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/

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 11/13/

34 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/

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 11/13/

36 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. 11/13/

37 Medical Aid Table Updates

38 Medical Aid Table Updates 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/

39 Medical Aid Table Updates 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/

40 Medical Aid Table Updates 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 11/13/

41 Medical Aid Table Updates Custom Calculations Certain medical aid setups also makes use of Custom Calculations. E.g. Vitality. Vitality amounts needs to be changed each year 11/13/

42 Public Holidays

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 11/13/

44 Thank you for attending this session Please send any feedback or suggestions to: The Q&A session will now begin Please use the Chat block to ask your questions, and not the Q&A block.

45 Thank you 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.