Available for the following Payroll classic plans: Standard, Premium

With a few simple clicks, users can configure their platform to automatically pay rolled-up holiday pay to their irregular-hour workers.  Once this configuration is in place, leave will be seamlessly integrated into every pay period, making sure that employees receive their entitled compensation without delay.

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Step 1: Update the Pay Categories

Click Payroll Settings and then click the Pay Categories button under the Pay Run Settings section. Select the Pay Categories you would like the platform to include in the rolled-up holiday pay calculation and tick the Apply rolled-up holiday pay box within that category.

When you have selected any Pay Categories to be included in the rolled-up holiday calculation, the platform will automatically generate a new Pay Category called Rolled Up Holiday Pay therefore there is no requirement for you to do this.

Step 2: Update the Employee

From the People list select the Employee whose details you would like to apply the rolled-up holiday pay calculation to. Select Pay Run Defaults under Pay Run Settings and then select the Employee is Paid Irregularly tick box.

A box should then appear for you to tick called Apply rolled-up holiday pay.  Once this has been selected, the Holiday pay percentage will default to 12.07% however you can over-ride this figure if you would like to.

Step 3: Pay-Run Calculation

When earnings have been paid against any pay categories which you have set up to be applied to the rolled-up holiday pay calculation, the platform will automatically calculate the figure to be paid to the employee in the Pay Run.  This figure cannot be over-ridden.

The calculation is based on the .gov guidance 

Calculation

A = Total £ value of all pay categories you have selected to be included as part of rolled-up holiday pay.

B = Percentage value saved against the employee (default 12.07%).

A/100 = Y

Y x B = V (Apply rounding to nearest pence)

Example

Employee A has worked 35 hours at an hourly rate of £10.42

35 x £10.42 = £ 364.70

£364.70 / 100 = £3.65

£3.65 x 12.07 = £44.0555

Round up to nearest pence

£44.06 = Rolled-up holiday pay

 If your employee is paid any statutory or occupational leave within the Pay Run then the platform is not able to support the calculation as this introduces a 52-week reference period to gain an average of hours worked.  If this does affect any of your employees in a Pay Run you will be notified of this via a Pay Run warning.  The calculation of the rolled-up holiday pay will default to zero, but you will be able to over-ride this.

Step 4: Pay slips

The employee will be notified of the rolled-up holiday pay amount and the percentage used for the calculation on their pay slip.

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