Calculating ACC Leave

In this section we will look at the ACC takes — ACC and ACC MKP. ACC leave is defined as per absence and uses the entitlement of GENERIC DAYS. Two ACC earnings are delivered—ACC LVE to capture payments for the ACC leave and ACC MAKEUP for make up payments. The earning element, ACC LVE is generated as a result of an absence from work when an employee has an accident and uses a Unit x Rate calculation. The number of units and the rate to be paid is generated at the payee level. These values are populated from the ACC absence take via the Generate Positive Input Member List. This earning is used to pay the absence take ACC.

In this section, we discuss:

Calculating ACC leave based on the leave period.
Accumulating the correct amount for the gross total earnings.

Global Payroll for New Zealand calculates three different periods of ACC leave using one formula—LVE FM ACC RATE—which calculates the correct pay rate depending on the number of days taken for the ACC leave with the same original begin date.

To determine the correct number of days taken, this formula uses duration LVE DR ACC DAYS, to calculate the number of ACC leave days for the previous takes (with the same original begin date). Based on the value returned from this duration, and number of days processed in the current take, the total number of days taken is determined.

Three different ACC calculation formulas are then called (based on the day of leave being processed) to calculate the correct pay rate for each of the leave periods:

Period	Calculation	Absence Take	Formula (Pay Rate)
First Period Days 1 – 5	80% of the ordinary rate.	ACC	LVE FM ORD RATE
Second Period Days 6 – 25	80% of the average rate for 4 weeks prior to the accident. (beginning of ACC leave)	ACC	LVE FM AC2 RATE
Third Period Days 25 –	80% of the average rate for the 52 weeks prior to the accident. (beginning of ACC leave)	ACC	LVE FM AC3 RATE

Period

Calculation

Absence Take

Formula (Pay Rate)

First Period

Days 1 – 5

80% of the ordinary rate.

ACC

LVE FM ORD RATE

Second Period

Days 6 – 25

80% of the average rate for 4 weeks prior to the accident. (beginning of ACC leave)

ACC

LVE FM AC2 RATE

Third Period

Days 25 –

80% of the average rate for the 52 weeks prior to the accident. (beginning of ACC leave)

ACC

LVE FM AC3 RATE

Calculating the First ACC Leave Period

Employers are required to pay an employee 80 percent of wages for the first week (days 1 to 5) the employee has off work as a result of a work-related accident. Employers are generally responsible for paying compensation for incapacity resulting from a work injury up until the close of the sixth business day after the day of the work accident.

For days 1 to 5, formula LVE FM ACC RATE calls formula LVE FM ORD RATE to determine the pay rate.

Note: The ordinary rate is defined in formula LVE FM ORD RATE, in which the ordinary hourly rate, HOURLY RT, is moved to calculate earnings. For customary data delivery it is set up to equal the compensation rate from the Job Compensation table. The ordinary rate is defined as a subset of compensation rate codes, defined on the Job Data - Compensation page and you can alter it by adding other compensation rate codes to define the required composition of the ordinary rate.

If variable LVE VR ACC DYS TKN (which stores the number of ACC days taken for the same original begin date) is less than or equal to 5, LVE FM ORD RATE (the ordinary rate) is moved to formula LVE FM ACC RATE.

Calculating the Second ACC Leave Period

For the first four weeks after the first week, (days 6 to 25) employers are required to pay the employee the weekly compensation of 80 percent of the average earnings of the employee in the four weeks prior to the accident.

For days 6 to 25, formula LVE FM ACC RATE calls formula LVE FM AC2 RATE to determine the pay rate.

Formula LVE FM AC2 RATE calculates the pay rate for the second period of ACC leave, based on average rate for the four weeks or one month before the original begin date of the ACC leave.

If variable LVE VR ACC DYS TKN (which stores the number of ACC days taken for the same original begin date) is greater than 5 and less than or equal to 25, LVE FM AC2 RATE is moved to formula LVE FM ACC RATE.

The pay calculation calls formula LVE FM ROLL AVG (which retrieves amounts for the beginning and the end of requested average calculation, using historical rules LVE HR R/A START and LVE HR R/A END), and uses the average rate for the last four weeks before the start of the ACC leave (based on the original begin date of the take). It is calculated for the pay periods before the one including the original begin date. Formula LVE FM ACC R/A DTS determines the start and end dates for rolling average calculation.

Calculating the Third ACC Leave Period

Where incapacity extends beyond the second period, weekly compensation is 80 percent of the average earnings over the 52 weeks prior to the accident.

For days 25 and over, formula LVE FM ACC RATE calls formula LVE FM AC3 RATE to determine the pay rate.

Formula LVE FM AC3 RATE returns the pay rate to be used for leave pay calculation for the currently processed ACC leave day—for the fifth week onwards of the leave. The pay calculation uses the average rate for the last 12 months (52 weeks) before the start of the ACC leave (based on the original begin date). It is calculated for the pay periods before the one including the original begin date.

If variable LVE VR ACC DYS TKN (which stores the number of ACC days taken for the same original begin date) is greater than 26, LVE FM AC3 RATE is moved to formula LVE FM ACC RATE.

The pay calculation calls formula LVE FM ROLL AVG, which retrieves amounts for the beginning and the end of requested average calculation. Formula LVE GET R/A DTS sets up all the elements necessary to determine the starting and ending point for the rolling average calculation, using historical rules LVE HR R/A START and LVE HR R/A END.

Calculating ACC Makeup Payments

ACC MAKEUP is an earning element which serves as a make up pay to compensate employees who have only been paid 80 percent. If selected to be paid by the employer, this earning element is used to increase an employee's payment to 100 percent (an additional 20 percent) of their usual pay. This earning element uses a Unit x Rate calculation. The rate is determined by formula LVE FM ORD RATE.

The makeup payment is defined as a separate take — ACC MKP — which reduces sick leave by 0.2 days (using day formula LVE FM DAYS MKP PH, that counts the number of units due to be worked on the absence day to determine by how much to reduce the entitlement balance) and is paid at the ordinary rate (using formula LVE FM ORD RATE). Formula LVE FM DAYS ABS PH counts the number of units due to be worked on the absence day to determine the amount by which to reduce the entitlement balance.

Formula LVE FM ACC MKP checks if the makeup payment should be processed. If you select makeup in the Event Config 1 (enter MKP) when entering an absence event, the makeup take is generated for every day of the leave. The take passes hours as the units and is generated as a result of an absence from work when an employee has an accident.

Note: The ACC payments are not added to LVE AC ROLLAVG AMT and LVE AC ROLLAVG HRS accumulators. During rolling average calculation only partial payments for weeks of ACC leave are included in the calculation.

Calculating ACC Leave