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How does Payroll calculate Relevant Daily Pay?
Jan 26th, 2009 by admin

MYOB Payroll incorporates a calculation for Relevant Daily Pay.

This is found by going to “Enter Pays” and going into an employees pay screen.

Select the Leave button then select the button beside “Alternative Holidays Due”. Here you will find the Relevant Daily pay calculation.

Calculating Relevant Daily Pay

When processing a pay for an employee that needs to be paid Sick Leave, Bereavement Leave, Public Holiday or an Alternative holiday the following process/questions needs to be followed:

Would the employee have been paid for x number of hours at their normal pay rate had they worked?

• If yes, enter x hours against the appropriate Pay Code. No further action required
• If not, click the Leave button, and click the Relevant Daily Pay rate button (alongside the rate for Alternative Holidays).

Is it clear what the employee would have earned had they worked?

• If yes, enter these details in the top section.

• If not, click the last 4 weeks earnings button and make sure the correct earnings are selected.
i.e. the correct dates and exclude anything out of the ordinary. ( See section 8(1)(c) of the Holidays Act 2003).

Click OK and then confirm the number of days actually worked in the last 4 weeks, and tick the checkbox to use the last 4 weeks earnings.

Check that the standard ‘hours per day’ is correct and then click OK and then OK again on the Leave Details window.
The relevant daily rate that applies fot this pay will be set for the appropiate pay codes.

Enter the standard hours against the appropriate Pay Code.

When the pay is finalised the rates for these Pay Codes will be reset back to the employee’s normal pay rate.

To reset the rates back to the employee’s normal rate without finalising cancel the pay.

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