Home » Categories » Solutions by Business Process » Finance » Payroll

Payroll Considerations - Holiday Pay

Datafile Software

Payroll Considerations - Holiday Pay

There are two methods available to you to handle holiday pay:

Give extra pay in the last period before the employee goes on holiday. This is usually given in terms of weeks or days pay

Make a contribution to a "holiday bank” for each employee for each period they work. In the pay period that holiday is taken, the bank is "emptied” into their gross pay for that period. The holiday bank is accumulated either from a fixed amount each period or a percentage of gross (basic plus overtime) or basic pay

The Datafile Software payroll handles either system. The advantages of the latter are that the notional holiday pay is accrued in your nominal ledger so that you have already provided for it in previous periods, and also you are not put in the position where you pay out more holiday pay than the employee is entitled to.

Custom Fields
  • Release ID: Standard
Attachments Attachments
There are no attachments for this article.
Related Articles RSS Feed
What is the DPS Secure Mailbox?
Viewed 2388 times since Tue, Mar 26, 2013
Employee Mandatory 4/4
Viewed 1815 times since Wed, Mar 27, 2013
Cheque Payments
Viewed 1858 times since Tue, Mar 26, 2013
RE-START A Former Employee Rejoins (Premier only)
Viewed 1799 times since Tue, Mar 26, 2013
Payroll Considerations - Trying Out the Payroll System
Viewed 1944 times since Tue, Mar 26, 2013
System Status
Viewed 1808 times since Tue, Mar 26, 2013
NI – Update the Employee National Insurance Category
Viewed 1269 times since Tue, Mar 26, 2013
Employee Basic Pay List
Viewed 1864 times since Tue, Mar 26, 2013
P11 Reports
Viewed 2404 times since Tue, Mar 26, 2013
Payment Adjustment Analysis
Viewed 3286 times since Tue, Mar 26, 2013