Employees can ask to cash-up up to one week of their four weeks' minimum entitlement to annual holidays each year. This can either be done all at once or in multiple requests.
Adding Annual leave cashed to a timesheet
If an employee requests annual holiday to be cashed-up, it needs to be added to an active timesheet just like any other pay type.
- Enter the standard hours of pay.
- Add another row to the timesheet by using the green plus button on the right hand side.
- From the drop down menu, select the pay type "Ann Leave Cashed".
- Enter the standard hours that this employee regularly works per day.
- Update and save.
In the example above, the employee is effectively being paid twice their normal weeks income. The system will calculate their tax at a higher rate. This is normal and they will likely get it back when they file a tax return at the end of the year.
For more information on when you can cash-up annual leave please refer to the Employment New Zealand website. Below is a link to the website for further assistance.