1. Log into your payroll platform.
2. Navigate to Payroll Settings
3. Then select Pay Categories under Pay Run Settings.
4. You will then need to update the 52 week average field to Include for the purpose of 52 week average calculations.

If you need to create a new Pay Category details on how to create a new Pay Category can be found in this article. 

Next, you will need to update the Leave Category.

1. Go to Payroll Settings.
2. Select Leave Categories.
3. Choose the Leave Category that you would like the system to base the 52 week calculation on and tick the 52 week average calculation box within that category.

If you need to create a new Leave Category, details on how to create a new Leave Category can be found in this article.

Please note: If you are reporting the earnings for the leave taken against another pay category, the name of the pay category MUST be 'Annual Leave Taken'.

1. To create a new pay run with the 52 week average calculation in you need to Create a New Pay Run .
2. Once you have created a new pay run you need to apply leave to the pay run this article will assist you. You can also add the leave manually in the pay run by clicking on the 'Actions' button against the employee and selecting Take leave.
3. Select the Leave Category the holiday pay should be paid against and the number of holiday hours which need to be processed through the pay run.
4. Once you click on Save the system will process the calculation, the hourly rate will be updated and a report icon will be detailed.
5. When the report icon is clicked this opens a context panel displaying a breakdown of the 52 week average calculation.
6. Any rows highlighted in red have not been included in the calculation due to a statutory payment or holiday pay being processed in that pay period.
7. A row highlighted in grey means that this row has been edited or added manually.
8. To see a breakdown of the Pay Categories used in each row for the calculation, click on the + beside the reference week.
9. When the row has been extended you are then able to edit the 'Hours worked' and the 'Hourly rate' figures. To do this click on the amount you would like to amend, which will then be highlighted in blue and type in the new figure. This will then update the 'Week's pay' and the average hourly pay rate and will also highlight this row in grey.
10. When you have made any changes click Save.
11. Please note: Any Pay Category which is set as a 'fixed' amount will not have the number of units included in the total hours for the calculation, however the 'Weeks' pay' amount will be.
12. Once these rows have been amended you cannot revert them back to their original state (not even by deleting the pay run and re-running it.) They will remain for any future holiday pay calculations and will continue to be highlighted in grey.
13. Once the context panel has been closed, the holiday pay rate will be updated in the pay run.
14. You are also able to add an extra reference week to the calculation. To do this press 'Add' and an extra reference week will be added in yellow. Enter the hours worked and hourly rate and the system will update the 'Weeks' pay' and the average hourly pay rate and will also highlight this row in grey.

Please note: Once these rows have been amended you cannot revert them back to their original state (not even by deleting the pay run and re-running it.) They will remain for any future holiday pay calculations and will continue to be highlighted in grey.

If the average hourly rate calculates to be less than the employees current hourly rate then the system will default the holiday hours to be paid at the current pay rate for the employee OR if any data is missing from the report, so there isn't a full 52 weeks worth of reference weeks, then a message will pop up in the pay run to make you aware of this.

You can import 52-week average holiday pay data into the payroll platform by following these steps:

1. Click the Business menu.
2. Click the Payroll Settings submenu.
3. Under Business Management, click Data Extracts.
4. Click the Data Type dropdown menu and choose 52 week average data.
   
5. Click the Download button.
6. In the spreadsheet you downloaded, enter the following details and save the changes:
   • Employee ID.
   • First Name.
   • Surname.
   • Week Commencing Date.
   • Hours Worked.
   • Hourly Rate.
   
7. Back on the payroll platform, click Import 52 Week Data under Business Management.
8. Click the Select File button and choose the spreadsheet you edited.
   

If the import is unsuccessful, a warning will show stating the issues found. If the import is successful, a notice will show confirming it has been successful. Once imported and the employee has taken leave, you will see the imported weeks in the 52 Week Average Report within the pay run. Click on the report icon next to the employees leave:

The weeks you have imported will show in grey. You can import more weeks or manually add them.

You can download the report to PDF:

You can download a PDF copy of the average holiday pay calculations for any current or previous pay runs by clicking on the report icon and pressing Download as PDF from the pay run.

If you go to the employee's leave balances once the pay run has been finalised, you can view a snapshot of the calculations by clicking on the report icon under the Annual Leave Category and the context panel will appear

The system will always look at the working week set up in the business details when pulling through the information into the holiday calculation table in the pay run.

If the pay period matches with the working week set up, then the week ending dates will match the average holiday pay calculation. If not, the system will look at the date the employee started (if within the 52 week average period) and take into account any full weeks worked in the calculation. Weekly example below:

Employee stated 28/03/2022, which was a Monday and the pay period for this payroll is Saturday to Friday. The business set up has the working week set as Monday to Sunday.

In the third week of this employee being paid (pay period 09/04 to 15/04), they have taken some annual leave. Due to the employee first being paid on 08/04/2022 with a pay period of 26/03 to 01/04, this week is not included in the calculation as they have not worked 1 full week this week due to their start date.

The above logic is the same for 2 weekly and 4 weekly pay runs.

Monthly Calculation:

The system will look at the working week when processing the calculations for employees. As the system does not know the hours worked on a week by week basis, the weekly calculation will be based on the number of hours and amount paid in the month, divided by the number of days in the month and multiplied by 7 days to get back to the weekly figures. When the months do not end on the same day as the working week end date, the formula will still be taken into account by taking the months figures into the daily rate consideration in the calculation.

Any full pay period where the employee has been paid any Statutory Payments or Annual Leave will not be included in the 52 week average calculation - this will occur if your pay run pay period dates do not match with the working week business settings.

Please note that this is the only way the system will break down the week by week calculations, even if you enter the employees information to the pay run via timesheets.

As mentioned in this article, you are able to enter the week by week breakdown by manually adjusting the calculation table.