How do I calculate initial Annual Leave Accrued in Advance?

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Annual Leave Accrued in Advance represents the number of hours annual leave the employee has accrued since their last leave anniversary. When their next anniversary comes around, this annual leave accrued becomes annual leave they are entitled to - it is moved to Annual Leave Due.

When starting out with FlexiTime this can be one of the more difficult fields to fill in for an employee. Manual / paper based systems don't tend to record this, and some other payroll systems also fail to report this effectively.

If an employee accrues their annual leave at a regular rate (i.e. they have an agreed number of hours per week that the annual leave is based on and this is entered into Normal Hours per Week) the annual leave accrued can be calculated based on the number of days from their last leave anniversary to the end date of the last pay processed for them. The calculation is as follows:

[Number of days since last anniversary] * [Normal Hours per Week] / 7 * 4 / 52

Thus if half the year has elapsed since an employees anniversary (182 days) and they do 40 hour weeks, the annual leave accrued in advance will be:

182 * 40 / 7 * 4 / 52 = 80 (or two weeks).

To help with calculating the number of days and to make the calculations for multiple employees simpler, we recommend setting up a spreadsheet with the leave anniversaries in the first column (A), the last pay dates in the second (B), the number of hours per week in the third (C), and the following formula in the fourth to perform the calculation:

=(B1-A1+1)*C1/7*4/52

If the employee works irregular hours and does not have any contractual regular week then we recommend calculating thelir leave accrued as follows:

[Number of hours worked since last anniversary] * 4 / 52

If you are not able to determine the exact number of hours worked but have their Gross Earnings since their leave anniversary, dividing this by their average hourly rate will probably give an adequate approximation.

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