Post

1 follower Follow
0
Avatar

Why was salary deducted from my employee's pay?

Our Employee did not work for any days in January.  He had two days of Annual Leave available so was paid that, as well as the three public holidays.  The remainder of the days were processed as "unpaid leave".  When the payslip was processed there are 10.66667 hours of "Salary" deducted from his pay.  Why was this done and should this have happened?  Thanks.

Clare Rotherham Answered

Please sign in to leave a comment.

1 comment

0
Avatar

Clare the salary in a pay is calculated by working out the total hours for the year then dividing it by the number of pay periods in the year. I assume this is a monthly pay so the regular monthly salary will be something like 173.33 hours. Any leave entered into timesheets are then deducted from this salary amount. but since January has 31 days and there were more than the average monthly weekdays in this January, you ended up with a negative salary quantity. 

Because of the mismatch between equally divided monthly salaries and uneven length months, the way to handle this is to smooth the payments out over 2 months. In this case you would remove the -10.67 from the January pay, and then in February you would reduce the salary amount by this same amount.

Robert Owen 0 votes
Comment actions Permalink