SmoothPay supports time banking through TOIL, RDO, and Flexi-time. These allow employees to store additional hours worked and take them as paid time later instead of being paid immediately.
This guide explains how to set up a TOIL leave code and how to manually enter TOIL in a pay run.
TOIL, RDO, and Flexi-time all function in the same way. The terminology shown depends on your country settings.
What TOIL Is
TOIL is a leave balance measured in hours.
Employees can:
Bank TOIL
Reduce pay now and increase their TOIL balance.Use TOIL
Take paid time off now and decrease their TOIL balance.
TOIL balances change only when the pay run is completed.
Setting Up the TOIL Leave Code
SmoothPay must have a TOIL leave code before TOIL can be entered in a pay run. If one does not exist, create it as follows:
Go to the Codes screen
Select the Leave codes category
Click the + button
Set the following fields:
Enter the Abbreviation field as TOIL
Enter the Description field as Time off in Lieu
Set the Classification field to TOIL
Set the Use or accrue field to Hours
Tick the Show balance on payslip field if you want the balance displayed
Click Save button
The TOIL leave type is now available.
Applying TOIL to Existing Employees
Owner only
If the TOIL leave code was created after employees already existed in your payroll, it must be applied to their records manually.
Go to the Codes screen
Select the Leave codes category
Select the TOIL leave code
Click the spanner button
Select Apply settings for this leave type to all staff
This attaches the TOIL leave type to all existing employees.
How TOIL Works in Pay Runs
TOIL entries affect pay in two possible ways.
Positive TOIL
Used when an employee is taking TOIL.
Increases pay
Reduces the TOIL balance once the pay run is completed
Negative TOIL
Used when an employee is banking TOIL.
Reduces pay
Increases the TOIL balance once the pay run is completed
TOIL balances do not update until the pay run is processed.
Recording TOIL in a Pay Run
The method is identical for both positive and negative TOIL.
Adding the TOIL transaction
Create a leave transaction
Select the TOIL leave code
Click Next button or OK button
A zero-unit TOIL entry will appear under the Leave taken tab.
Editing the TOIL entry
Set the following:
Select the TOIL line
Click the Edit button
Enter the Units field as a positive number to pay TOIL
Enter the Units field as a negative number to bank TOIL
Click Save button
The TOIL entry will now affect pay based on the units entered.
Examples
Taking TOIL (Positive entry)
Units entered: 8
Result:
Pay increases by 8 hours
TOIL balance decreases by 8 hours after the pay run is completed
Banking TOIL (Negative entry)
Units entered: -8
Result:
Pay decreases by 8 hours
TOIL balance increases by 8 hours after the pay run is completed
Adjusting TOIL Balances
TOIL balances normally update automatically when a pay run is completed.
Manual adjustments may be required to:
Set an opening balance
Correct an incorrect entry
Reconcile balances during an audit
Manual adjustments are made by adding positive or negative TOIL entries directly to the employee’s leave balance. These should only be used when necessary.