Improved Salary Rate Calculation for Monthly & Semi-Monthly Employees

For salaried employees paid monthly or semi-monthly
, the hourly rate shown on payslips can now be consistent across all pay periods.
This calculation method can be optionally switched on under Payroll
 > Payroll Settings
 > General Settings
:
Previously, the hourly rate varied depending on the number of days/hours in the month, even though the salary amount stayed the same. This also caused leave liability balances to fluctuate.
Now, the system can use an annual average to calculate a stable hourly rate each period, resulting in a consistent hourly rate on every payslip, stable leave balance and liability calculations, and no change to the employee’s actual salary per period
Important to note:
This update applies to employees on monthly and semi-monthly pay periods only.
This calculation method will be turned on automatically for all customers at EOFY.
This will not recalculate any previous payslips/accruals.
If this is switched on prior to EOFY, it is recommended to manually check employee leave accruals in payslips, as they may be over or under allocated for the year.