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      Incorrect rates causing underpaid annual leave (NZ)

      MYOB will be in touch with customers affected by an issue that could cause employee annual leave to be underpaid.

      The issue was that, after importing leave into a pay run, an employee's average weekly earnings (AWE) and ordinary 4-weekly pay (OWP) rates were being calculated incorrectly. For example, a rate could be 700 instead of 900, or it could be 0.00.

      This was fixed in versions 2023.1.7 and 2024.1.201 onwards. Although the issue won't happen again after upgrading, you need to take steps to correct underpayments:

      1. Identify underpaid employees.
      2. Create an adjustment pay.
      3. Check for other leave payments that need to be recalculated because of the adjustment pay.

      1. Identify underpaid employees

      To help you find which employees have been underpaid, MYOB will provide you with a list of pay runs that likely include underpayments.

      After checking these pay runs and confirming that an employee was underpaid, you need to create an adjustment pay.

      2. Create an adjustment pay

      By creating an adjustment pay, you can force MYOB Acumatica to recalculate the AWE and OWP rates for an underpaid employee.

      When you complete the adjustment pay run, the employee gets a new payslip. Because the difference in net pay might be small, you can enter a payslip message on the Employee's Current Pay screen to explain the difference.

      1. On the Manage Pays screen, open the pay run with the underpayment. The Pay Run Details screen opens.
      2. Select the employee whose pay needs to be adjusted, then click Adjust Pays on the table toolbar.
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      3. Choose a transaction date for the adjustment journals and click OK.
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      4. On the Pay Run Details screen for the adjustment pay, open an employee's current pay.
      5. In the row for any leave pay item, click Days Taken.
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      6. In the Days Taken window, recalculate the rates:
        1. Deselect the Is Override Holiday Start Date checkboxes.
        2. Click the Save icon ADVBSaveRecordButton.
        3. Reselect the Is Override Holiday Start Date checkboxes.
        4. Click the Save icon again.
      7. Repeat step 6 for all of the employee's leave taken pay items. 
      8. Optionally, you can check that the recalculated rates are correct by using the Employee Leave Summary report. Depending on the employee's settings, either the recalculated AWE or OWP rate is used in the Rate column on the Employee's Current Pay screen.
      9. Return to the Pay Run Details screen for the adjustment pay.
      10. Complete the pay run as usual.
      11. On the toolbar, click the three dots icon AWFMToolsButton and choose Generate Payments.

      3. Check for other leave payments affected by the adjustment pay

      After completing the first adjustment pay, you must check all of the employee's subsequent leave payments for possible underpayments – both for annual leave and FBAPS leave, especially if FBAPS was calculated using the average daily pay (ADP) rate.

      This is because the first adjustment pay impacts the 52-week look back period used to calculate the AWE and ADP rates in subsequent pay runs. 

      For example, say an employee was underpaid annual leave in October. Adjusting their October pay also impacts the rates they should have been paid for all leave taken in November, December and January. So you might have to do three more adjustment pays for those months.

      When adjusting subsequent pay runs, you can follow the same steps as for the first adjustment pay.