Cash up an employee's annual leave

If an employee wants to cash up some of their annual leave, you'll need to adjust their annual leave hours on their payslip so that they're paid correctly.

Assign the leave type to an employee

  1. In the Payroll menu, select Employees.
  2. Click the name of the employee to open their details.
  3. Click the Leave tab.
  4. Click Assign Leave Type.
  5. Select the Annual Leave - Cash Up leave type.
  6. In the Schedule of Accrual list, click No Accruals.

    You can edit non-accruing leave in the employee's payslip.

  7. Enter the employee's Annual Leave - Cash Up balance in hours. This is usually 0, unless they had a balance at the opening balances date (conversion date).
  8. Click Save.

Once you've assigned the leave type to the employee, you'll need to request leave on behalf of the employee, then transfer the annual leave on their payslip.

Adjust an employee's annual leave hours

  1. In the Payroll menu, select Pay Runs.
  2. Create an unscheduled pay run.
  3. From the draft pay run, select the checkbox next to the employee you want to add to the pay run.
  4. Click the name of the employee to open their payslip.
  5. Under Leave Accruals in the Annual Leave - Cash Up line, add the portion of leave the employee wants to cash up.

    There's a limit to the amount of annual leave that employees can cash up.

    Cashing-up annual holidays (Employment NZ website).

  6. Under Leave Accruals in the Annual Leave line, enter the same number of negative hours.

    Image showing leave accruals.

  7. Click Save & Close.
  8. Process the pay run.

You might also be interested in