What This Process Does

  • Calculates leave liability in dollars for the fiscal year.
  • Depending on leave policies, leave calculations can be set on a flat rate or a custom calculation.
  • Provides an export that creates a csv file.

Requirements

  • Since leave liability calculations may be complex, involving limits, seniority or other factors, OpenRDA consultants can create the applicable formulas based on your policies for a reasonable fee. Please contact Donnica Carter (donnica.carter@rdasys.com) for more details.
  • Timing is critical for capturing an accurate leave liability amount: The leave liability calculation should be done at the end of your Fiscal Year, after all leave used has been entered, balances moved as needed (ex. personal to sick) using the Move Leave Balance process located under the Maintenance menu, and before updating new earned or used transactions for the new fiscal year
  • The accrual rates must be calculated before new salaries/rates for the new fiscal year are entered. If for some reason rates are not set prior to changing salaries, the COPYPAYRATE process in the Report Generator can be used to copy rates from a Pay ID

Leave Liability Setup 

Leave Management Module

  • HR → Leave Management → Setup → Leave Descriptions
  • Manage Liability should be set to true/on for each Leave Description for which liability is applicable
  • On the Liability tab, Liability Type needs to be set. Choices are Custom Expression or Flat Amount. If flat amount, the rate is entered in the Rate Amount field. If custom expression, it is entered in the Liability Formula. When not a flat amount, daily rates are normally calculated using the misc salary amount or the retirement salary amount from the payroll job master in conjunction with contract days. For hourly employees, the rate may be calculated using the misc unit rate from the job master (but may also need to be multiplied by hours per day to arrive at a daily rate).

Position Tracking Module

  • HR → Position Tracking → Setup → Gross Definitions
  • Contract Days and/or Hours per Day need to be set on the Gross IDs. 

NOTE: If these are not set at the Gross ID level, then they need to be populated on each employee's Payroll Job Master. The leave liability formula (see previous section) will use the Days or Hours, as needed, to determine the applicable rate (daily or hourly based on how the leave is maintained).

Leave Liability Processing

Zero Leave Liability

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Zero Leave Liability
  • If liability was calculated in a prior year, run Zero Leave Liability first (This process will zero accrued liability amounts in the leave and leave job masters).
  • The accrual rate can also be optionally zeroed. This would be necessary if policies have changed relative to employees eligible for leave pay outs.
  • Range by leave identification if you have any leave descriptions for which the rate is hand entered and maintained in the leave job master; this is common for grandfathered leave.
  • No printout is provided as the process updates the database immediately.

Set Accrual Rate

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Set Accrual Rate
  • There are two processes which can be used to set the Accrual Rate in Leave Job masters:
    • Set Accrual Rate from Payroll Setup – use this process when the accrual rate should be set based on an existing Rate ID in the payroll setup. Although entering of a fiscal year is required, it is only used with calendars as rates of pay are not maintained in the database on a fiscal year basis. A printout is provided; set flags to update the rate in the leave job masters.
    • Set Accrual Rate using Formula – use this process when your Leave Liability formula is established in the Leave Description (as noted above based on the Liability Type); range as needed but normally only select active leave job masters.
    • Check Group Defaults for set up in running for specific Leave IDs

Report of Liability Accrual Rates

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Report of Liability Accrual Rates
  • Run this report to verify that the rates are assigned correctly.
  • Normal selection is for active leave job masters.
  • Only leave job masters that have an accrual rate and a positive processed leave balance will be selected.
  • Once the accrual rates are set correctly, the Leave Liability can be calculated.

Apply Leave Liability

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Apply Leave Liability
  • Run this report process to calculate the liability amount; enter Fiscal Year, then Liability Formula and/or range/select as needed.
  • When contracting with RDA Consultants for a leave liability project, liability formula expressions will be written and stored in group defaults for leave descriptions/leave types (a liability formula may be needed if there are limits to the payout).
  • Normal selection is for processed/updated balances only and for active leave job masters. Use of processed balances only allows leave to be entered for the new fiscal year but not updated.
  • Check Group Defaults for set up in running for specific Leave IDs

Leave Liability Report

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Leave Liability Report
  • This report lists the Leave Description, then each employee, job number, units, rate and liability with totals by Leave Description and a grand total.

Export Leave Liability

  • HR → Leave Management → Maintenance → Year End → Leave Liability → Export Leave Liability
  • This process will export the information from the Leave Liability Report into a .csv file which can be opened into a spreadsheet; The file will be placed in the E-Documents in the Leave Management Module.
  • Quite often this is the preferred format of auditors. This also allows editing on an individual basis as necessary.
  • Will only include Leave Descriptions that are set for Manage Liability