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Leave accrual and balances

This article explains how leave accrues in PaySauce and how to view employee balances.

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Written by Jonathan
Updated over 2 months ago

PaySauce automatically calculates leave accrual for all employees according to Australian Fair Work and Award specifications. You can view employee leave balances at any time and customise accrual settings for individual employees when needed.


How leave accrual works

Automatic accrual

PaySauce automatically accrues leave for employees based on:

  • Their employment type (full-time, part-time, casual)

  • The applicable award or agreement

  • Their work hours

  • Fair Work regulations

Leave accrues with each pay run according to the hours worked.

Long Service Leave

PaySauce calculates Long Service Leave accrual based on the state where the employee is employed. This is determined by the employee's address, so it's important to keep their address details up to date.

โš ๏ธ Each state has different Long Service Leave requirements, and PaySauce applies the correct rules automatically. It is critical you keep your employee's address up to date to ensure correct accrual occurs.


Viewing an employee's leave balances

To view leave balances for an employee:

  1. Select Employees from the navigation menu

  2. Select the employee from the list

  3. Select Balances

You'll see the leave balance page showing accrued, taken, and available hours for:

  • Annual leave

  • Compassionate leave

  • Sick leave

  • Time off in Lieu (TOIL)

Understanding the balances

Accrued: Total leave the employee has earned

Taken: Leave the employee has already used

Available: Remaining leave the employee can take

  • If an employee has taken more leave than accrued, this shows as a negative number (e.g., "-8.5 hours")


Customising leave accrual for an employee

If an employee has different leave entitlements than the standard, you can adjust their settings:

  1. Select Employees from the navigation menu

  2. Select the employee

  3. Go to their employment settings

Annual leave weeks per year

Change the number of weeks of annual leave the employee is entitled to each year (default is 4 weeks for full-time employees).

Annual leave loading

Enable or disable annual leave loading for the employee.

Leave accrual for overtime hours

By default, leave accrues only for ordinary hours worked, not overtime hours. Select this option if the employee's agreement requires leave to accrue for overtime hours as well.

Cap leave accrual hours

Limit the maximum number of hours for which leave will accrue in each pay period. This is usually only relevant if you're accruing leave for overtime hours as well as ordinary hours.

Note: Enter the maximum hours as a number (use decimals for partial hours, e.g., 8.5 for 8 hours 30 minutes).


Leave accrual in pay runs

Leave accrues each time you process a pay run based on the hours included in that pay. You can see the accrued leave amounts on each employee's payslip.

Updated balances are reflected immediately after a pay run is completed.


Common Questions

An employee's leave balance shows a negative number

A negative balance means the employee has taken more leave than they've accrued. This can happen if you approved leave in advance or if there was an error in leave calculations. Review the employee's leave history to understand why the balance is negative

Long Service Leave isn't accruing correctly

Long Service Leave accrual is based on the employee's state of employment, which is determined by their address. Check that the employee's address is correct and up to date in their employee record

Leave isn't accruing for an employee

Check the employee's employment settings to ensure leave accrual is enabled. Also verify that the employee has hours recorded in pay runs, as leave only accrues for hours worked. Make sure you add all types of leave an employee has had (eg. public holidays taken) too.

I need to manually adjust an employee's leave balance

If you need to correct a leave balance (for example, to account for leave from a previous employer), contact PaySauce support for guidance on making manual adjustments.

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