This article explainsthe Leave Pay setup for Norwegian and Svalbard payroll calculations.
Problem Description
Some companies have employees that earn both Svalbard wages and Norwegian wages during the year. Leave/Vacation needs to be earned out of both types 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 next year.
The issue here is that Norwegian leave pay is calculated during the 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.
AHSD-185 - Getting issue details... STATUS
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 (e.g. 202213), and to all employees that have had Svalbard wages for that same year.
The entry code should take the amount from the Svalbard Leave Pay wages, calculate the actual Leave Pay amount and move it set 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.
The dedicated accumulator must be set to not be set to zero during the Close Year routine.
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.
The limit here is usually calculated based on the global rates: ((GB10 * 6) * GB7)/100
Where GB10 - 1G amount, GB7 - leave pay rate over 60.
We multiply the 1G amount with 6 to get the 6G amount, then we multiply this by the leave pay rate over 60 and divide by 100 to get the right percentage.
Step 1
The entry code for Svalbard Leave Pay must be set with higher priority than the regular Norwegian Leave Pay payment entry code.
e.g. Svalbard Leave Pay - 0, Regular Leave Pay - 5
Step 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.
In our example, we will use
//calculating the amount, it should not exceed the limit IF L61 > "limit" THEN L61 = "limit" ENDIF //collecting the amount to compare it with the amount //on the regular Norwegian Leave Pay over 60 W70 = L61
Step 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 + W127 > Limit THEN L61 = "limit" - W70 ELSE IF W70 + W127 < "limit" THEN L61 = W127 ENDIF ENDIF ENDIf