An employee has resigned and overconsumed his leave by 5.5 days. We need to deduct the 5.5days from his last pay.
The current practice is that the annual leave in IT2001 was converted to unpaid leave. However it was noted that the formula for calculating unpaid leave and overconsumed leave is different.
Formula for NPL deduction:
July - 23 work days, Aug - 21 work days
(3.5/23 * 2400) + (2/21 * 2400) = 593.79
Formula for overconsumed leave deduction:
(12 * 2400)/260 * 5.5 = 609.23
There is a difference of $15.44
It was also noted that changing the annual leave to NPL was not right. Can anyone please advise how can payroll deduct the amount of $609.23?