When I enter the annual salary in MYOB Payroll, the weekly rate doesn’t calculate correctly. Why not?

Some awards are quite pedantic about the fact that a year isn’t actually made up of 52 weeks; rather, a year is made up of 52 weeks and one day for three years out of four, and 52 weeks and two days every leap year. This means that every seven years, you’ll get 53 pay weeks in the year, rather than 52.  The awards address this situation by saying that a year is made up of 52.14 weeks.

This is all very well, but when MYOB Payroll calculates a weekly pay based on an annual salary, it simply divides the annual salary by 52. So, if you enter $52,000 as the salary for an employee, their weekly pay comes up as $1,000. However, if an award calculates their year as being 52.14 weeks, the weekly pay should be $997.31.

The workaround is simply to refer to the award for the weekly rate, then multiply the weekly rate by 52 and use this figure as the annual salary.

The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95

<< Back to MYOB Payroll page