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Community > Payroll Feature Requests >

AU Payroll: Leave on ordinary times earnings

Started by Leora Gardiner in Payroll Feature Requests | Idea

Need an "calculate leave on this pay type" button on all pays types (like you already have for overtime), so that we can have multiple base earnings rates.

Trying to work around it using the multiple of base hourly rate is far too cumbersome and does not always work with complicated EBAs and Awards.

This is super urgent as we have a number of clients VERY upset with the way the leave calculates.
Official Xero Reply
Hey team, apologies for not coming in here sooner, appreciate you all want an update on this.

To start I just want to assure you that we are listening and we do care. With over 8000 requests (over 1000 of these being Payroll requests) we just can't develop everything. Have a read of this article on our blog for more info on how we prioritise work.

As at March 2021, there's no plans to change how additional pay items that need to accrue leave are set up. The team have a mountain of work ahead of them in the compliance space with regards to STP 2.0 so all our efforts are directed here. We're still very aware of this request though and will continue to keep our eye on how it's tracking.

For anyone newly coming across this thread, I just want to reiterate how additional pay items that need to accrue leave should be set up.

When setting up the main pay item you can select Rate per Unit as the Rate Type and when assigned in the Ordinary Earnings Rate field in the employee's Employment tab, this rate'll automatically accrue leave.
Any additional earnings rates that need to accrue leave need to be set up with a Rate Type of Multiple of Employees Ordinary Earnings for the Accrue Leave for this Earnings Rate button to appear. Note, you'll need to enter a multiplier here as well - if this rate is paid at the same rate as the OER, this would be 1. I've included the formula for calculating the multiplier below.

Additional Earnings Rate ÷ Ordinary Earnings Rate = multiplier.
E.g. New rate = $30, Ordinary rate = $27.50
$30 ÷ $27.50 = 1.0909

Please do keep adding your votes if this is something you'd like to see and we'll be back in with an update if there's news to share 😊

Cassidy Hall (Community Manager)