How unpaid leave is deducted from payroll

How to view and manage unpaid leave deductions on the payroll.

Unpaid leave requests can be submitted by both admins and employees. Upon approval of the leave by all approvers, a deduction is automatically created on the payroll table.

To know how to set up an unpaid leave, please click here.

How unpaid leave deductions work.

Step 1

When the unpaid leave is fully approved by all approvers in the hierarchy, a notification will be shown on the payroll table for employees with automatic pay deductions associated with unpaid leave.

Step 2

Clicking on Filter Employees on the notification bar shows you the employees with unpaid leave deductions.

Step 3

Click on the employee row to be directed to their current payroll month with further details on their unpaid leave deductions. Clicking on View Details will take you to Adjustments in the Payroll tab of the employee's profile

Step 4

In the Adjustments tab, clicking on the dropdown will show you the break-up of the individual unpaid leave requests and the calculation for the deduction amount.

Click here to learn more about how unpaid leave is calculated and when it is reflected on the payroll table.

Note: You can also view all 'unpaid leave deduction adjustments' created for all employees under the Adjustments tab as shown below.

When do unpaid leave deductions reflect on the payroll table

The deductions on payroll depend on when an unpaid leave request is created and the month it is requested for. Below are the different scenarios for each -

1. Leave request is for the open payroll month - the deduction is created in the current open payroll month.

2. Leave request is for a future payroll month - the deduction is created in the future month when payroll is open for that month.

3. Leave request is for the current and future month (e.g. 15th of Feb - 7th of March) - two deductions are created, one in current open month and another in future open month.

4. Leave request is for multiple future months - the deductions are scheduled for future months as payroll opens for each month.

5. Leave request includes closed payroll months - As the month is closed, an email is sent to the Payroll Manager(s) with relevant information, so that they can create a deduction if it doesn’t exist already.