Creating a banked leave

Banked leave is a special type of leave whereby the employees gross pay is reduced using a pre-tax deduction and this money is used to pay for the hours accrued (or banked). This is a form of salary sacrifice.

Eg. Employee works 40 hours per week, and by agreement 2 hours are converted to a banked leave accrual. So the persons gross pay is reduced to 38 hours and 2 hours become available as banked leave which can later be used as a paid RDO.

1. In the Options tab, click Leave.
   
   
   
2. Click New.
   
   
   
3. Enter a Leave Name and Description.
4. Select Banked Leave as the Leave Class.
5. Click the + icon. 
   
   
   
6. Enter a Leave Period Name, but leave the Accruals at 0 as per the previous screenshot.
7. Click Save & Close.
   
   
   
8. In the Employee Edit screen add the new leave. At the bottom of that screen enter the Percentage of Worktime to be Banked, eg. 5% of worktime to be banked on a 40 hour week is 2 hours. Enter a Minimum Worktime Required, that is the amount of hours that need to be worked in a pay period before the banked leave can accrue.
   
   
   
9. In the payrun we can see when the employee hits 40 hours worked, they are paid for 38 hours, and 2 hours are banked from their gross pay.
   
   

Related Articles

Leave accrual methods explained

How to create and apply new leave types

How to apply leave taken in a payrun