Thanks to the integration between the Leave and Payroll apps in Talenox, No Pay Leave deductions will be automatically pulled into the Payroll app during payroll processing for that month. For example:
No Pay Leave applications in Leave app
No Pay Leave deductions in Payroll app (under Payroll Settings > Leave Payments/Deductions - Step 2)
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How to process No Pay Leave deduction for previous month in Payroll?
For SUITE Plan Users:
Good news! If you are on our SUITE plan and utilise the Leave module to manage your employees leave, processing of NPL deduction for the previous month in payroll has now been automated.
Just process payroll as per normal for the current month and any NPL deductions that have not been included in your previous month's payroll will be added in.
No need to worry as the calculations for NPL deduction will be based on the previous months' payroll processed - NPL will be accurately calculated by the system 👍
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For FREE Plan Users:
Since you do not have access to our Leave module, the calculation for previous month's No Pay Leave will have to be done manually.
This deduction will be based on Monthly Gross Rate of Pay. If a deduction is needed for allowances, you will have to do a manual calculation on that.
The formula for No Pay Leave deduction depends on the specific proration calculation selected in Company Details:
1. Working Days
(No. of days of NPL in MM/YYYY / No. of working days in MM/YYYY) x Monthly **Gross Rate of Pay
2. Calendar Days
(No. of days of NPL in MM/YYYY / No. of calendar days in MM/YYYY) x Monthly **Gross Rate of Pay
Alternatively, you can use our very own Calculator to quickly calculate accurate No Pay Leave amount for your employees. 😄
**NOTE: Do ensure that your calculations of Gross rate of pay includes allowances that an employee is entitled to under a contract of service. (MOM)
However, MOM also recommends that allowances to be excluded from Gross rate of pay calculations are as follow:
Travel allowances
Food allowances
Housing allowances
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Once you have manually calculated the No Pay Leave deduction amount, under Payroll > Payroll Settings > Process Payment - Step 3, you'll just need to choose "Deduction" under Ad Hoc Payment/Deduction tab and leave the remarks as "No Pay Leave (dd/mm/yyyy)".
