Leave liability and accrual calculator

What the leave liability and accrual calculator does

Untaken leave is a debt the business carries. This workbook works out the leave days each employee has earned to date, subtracts the days taken, converts the balance to a daily rate and totals the liability, so you can provide for it in your accounts and plan who needs to take leave.

Who it is for

Finance managers, accountants and owners who need the leave liability for the year-end accounts, and HR officers who want to see who has too much leave outstanding.

How to use the workbook

1. Check the entitlement and days-in-a-month figures on the Rates sheet.
2. Enter each employee's monthly basic pay and the months worked in the leave year.
3. Enter the leave days already taken.
4. Read the balance in days and in shillings, and the total liability.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Days earned to date from months worked
• Balance in days and the daily rate
• Value of leave owed per employee
• Total leave liability at the top
• Entitlement and day rate on the Rates sheet

The workbook has these sheets: Instructions, Leave, Rates. The main table has the columns Employee; Monthly basic pay; Months worked this leave year; Entitlement (days); Days earned; Days taken; Balance (days); Daily rate. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Use the leave year in your policy, not the calendar year if they differ.
• Count only the leave that can be carried forward.
• Review large balances with the employee and agree a plan to take them.
• Update the workbook before each year end for the accounts.

Why keep this record

Staff records go wrong in small, repeated ways: a figure typed twice, a deadline forgotten, a promise that nobody wrote down. A tidy workbook that everyone uses the same way removes most of those problems. It also gives you something to show an employee, an auditor or a labour officer when a question comes up months later, and it makes the next payroll quicker because the facts are already in one place.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Payroll records are personal data and tax records at once, so keep the file somewhere only the people who need it can open, and keep each month's copy for at least five years. Statutory rates such as NSSF limits and the Housing Levy change, so check the Rates sheet against the official source before you rely on a figure.

Read how to run payroll for a small business for the wider picture. Free calculators that go with it: Severance pay calculator. See more payroll templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: Severance, Notice and Leave Pay Calculator
• Guide: How to run payroll for a small business in Kenya
• Guide: How PAYE is calculated in Kenya, step by step
• Guide: NSSF contributions explained: tiers, limits and what you pay
• Another template: Severance and terminal dues workbook
• Another template: Annual PAYE and payroll summary
• Another template: Annual leave planner and register

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