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This article explains Leave Pay setup for Norwegian and Svalbard payroll calculations.

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Problem Description

Some companies have employees that earns both Svalbard wages and Norwegian wages during the year. Leave/Vacation needs to be earned out of both type of wages and separated for reporting and accounting purposes.

The problem can be divided into two separate items:

• How to transfer the Svalbard leave pay to the next year.
  The issue here is that Norwegian leave pay is calculated during Close Year routine and is set into dedicated accumulators. The Close Year routine can’t accommodate calculating out the actual leave pay and setting it on a separate accumulator.

• When paying out the Leave Pay, it must be paid out on two different entry codes due to Norwegian reporting, however, the total amount should not exceed the 6G amount.

Solution

Svalbard Leave Pay transferred to Next year

A separate entry code that will calculate out and set the Svalbard Leave pay into an accumulator needs to be added.

This entry code needs to be added in the last payroll period of the year, and to all employees that has had Svalbard wages for that same year.

The entry code should take the amount from the Svalbard Leave Pay wages and calculate out the actual Leave Pay amount and set into the dedicated accumulator.

If the actual amount has been calculated on a separate accumulator during the year, then that amount can just be copied into this dedicated accumulator.

Paying out the Leave Pay

The Svalbard entry code will be prioritized and it is the Norwegian wages Leave pay amount that will be reduced if the total goes over the 6G limit.

1. Entry code for Svalbard Leave pay must be set with priority that is higher than the Norwegian LEave Pay payment entry code

2. The script for Svalbard will only check and reduce the amount to stay within the 6G limit, in addition a temporary accumulator with the amount must be set.
   W70 = L61

3. In the script for Norwegian payroll we check if there is any amount left within the 6G limit to be paid out.
   
   IF W70>”limit” THEN
   L61 = 0
   ELSE
   IF W70 + W327 > Limit THEN
   L61 = Limit - W70
   ELSE

   IF W70 + W327 < Limit THEN
   L61 = W327
   ENDIF
   ENDIF
   ENDIf