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Paying your employees > Creating payroll categories > Entitlements Information window
User-Entered Amount per Pay Period should be selected if you want to manually enter a specific amount for each employee, each pay period. Choose this option if the amount varies regularly.
Equals x Percent of allows you to set the entitlement as a percentage of the number of hours of any wage category. It can only be used with employees who have an Hourly Base Pay (entered in the Payroll Details tab view of their card). For information about the way in which you should determine the percentage rate for calculating holiday and sick-leave accruals, see Calculating the percentage of holiday and sick leave accruals.
Type the required percentage for the entitlement in the first field and then select the wage category from the selection list, which shows all your hourly wage categories, in addition to Gross Hours and Federal Hours, which totals all the hourly wage categories you pay an employee.
For example, an annual leave entitlement may be for 20 days per year, being 160 hours per year based on a 40-hour week. Every hour worked accumulates 0.076923 hours of leave, or 7.6923%. If a worker is paid an hourly pay of 40 hours plus 2 hours overtime, and both are included in gross hours, the Gross Hours and Federal Hours options will calculate an entitlement on a weekly pay of 7.6923% of 42 hours, or 3.231 hours.
Equals x Hours per allows you to enter a fixed number of hours to be accrued each Pay Period, Month or Year, regardless of the hours worked by the employee. If you have set your employees to be paid on a salary basis rather than on an hourly basis, this is the only option that will automatically accrue entitlements. Using this method, an annual leave entitlement may be for 20 days per year, being 160 hours per year based on a 40-hour week. If the employee is being paid fortnightly, there are 26 pay periods per year. The amount you enter here would be 160 ÷ 26 = 6.154 hours per pay period. If you pay more than a standard pay period in one cheque, you will need to manually adjust this figure. For example, for 2 weeks pay on one pay (1 week in advance), you would double it to 12.308 hours.
If you want to carry over any entitlement leave balance from the previous year, select the Carry Remaining Entitlement Over to Next Year option.
Each entitlement category must have a Linked Wages Category. For example, the Holiday Leave Entitlement could be linked to the Holiday Pay wage category and the Sick Leave Entitlement could be linked to the Sick Leave wage category. If you create a new entitlement, you must link it to a wage category.
When employees uses their entitlement, for example, by taking a holiday, you allocate the hours taken against the linked wage category (in this example, the Holiday Pay wage category). The employee’s accrued leave balance is reduced by the hours taken.
Note that you can link multiple wage categories to an entitlement. This enables you to provide and track different types of the same entitlement. For example, you can link a Sick Pay With Certificate wage category and Sick Pay Without Certificate wage category to sick leave entitlement. When an employee takes either type of leave, your sick leave entitlement is reduced by the hours taken.
Calculating the percentage of holiday and sick leave accruals
An employee has 6 days sick leave a year and works an 8-hour day.
8 x 5 = 40 work hours per week
6 x 8 = 48 hours of sick leave
48 ÷ (40 x 52) = 2.31%

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