(A) Paying Annual Holiday Pay

Paying as normal sequence of payruns

You can pay each week of annual holiday pay as a normal pay run if you wish. In this case there is nothing special you need to do - just process each pay run (for example, each week or fortnight) one after the other as usual.

Or, if you are closing down, you can process all the pays beforehand if you want to do this. You can also send in the payday filing at the same time. It should be possible to upload your payday files in advance - so you could do all this on the same day, because each file will have a different pay date so will be distinguishable by IRD's system. Alternatively, you could check with IRD about whether you can leave all the payday filing until after you return. See the following example.

Example - processing all the pays before a closedown:
You might process all the following pays on the same day (say Friday 22nd December 2023) as four separate payruns. In this example, the regular pay period end day is Friday, and employees are paid on Mondays. But Monday is Christmas in the example, so we will pay on the same day. Your pay period end and payment dates can be other than this of course. It does not matter that you are processing these on the 22nd December yet entering the following future dates into Payroll Pro.

Week Ending	Payment Date	Pay Details	Payday Filing
Fri 22nd Dec 2023	Fri 22nd Dec 2023	40 hrs worked	On 22nd December
Fri 29th Dec 2023	Fri 29th Dec 2023	2 public holidays, 3 days annual holiday pay	On 22nd December (or by 17th January)
Fri 5th Jan 2024	Mon 8th Jan 2024	2 public holidays, 3 days holiday pay	On 22nd December (or by 17th January)
Fri 12th Jan 2024	Mon 15th Jan 2024	5 days holiday pay	On 22nd December (or by 17th January)

 

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Paying all in a single pay run

It is also possible to enter three or four weeks as a single pay run. This is explained as follows.

Week Ending	Payment Date	Pay Details	Payday Filing
Fri 22nd Dec 2023	Fri 22nd Dec 2023	40 hrs worked, 4 public holidays, 11 days holiday pay	On 23rd December

 

The example below is based on showing each day of your pay period and each day of holidays after the end of the pay period.
(see also Entering Holiday Pay as a single total in one line).

When you need to pay holiday pay for dates falling after the end of the current Pay Period, extra weeks can be shown as follows:

1. Locate the “extra weeks...” button which shows just above the “Day and Date” column, and click this. You can also show extra weeks by clicking “Days/Weeks to show” at the bottom of the grid and selecting  “Add/Remove extra weeks for Holiday Pay”.
2. A white window will now appear giving the option to select the number of weeks to show after the current pay period end date.
3. Choose the number of weeks required, and click YES.
4. You will see the additional weeks shown in the grid. These will be coloured green to highlight the fact that they fall outside the usual pay period.
5. You can now enter Holiday Pay and/or Public Holidays by typing H or P in the Description column.
   

 

Example:
Employee (usually paid weekly) works the 5 days of the week Mon 18 Dec to Fri 22 Dec 2023, and will then take the next 3 weeks off. 
You will need to show Holiday Pay days and Public Holidays falling within this period. 
The total pay will therefore be 4 weeks - the week 18 to 22 December plus the 3 weeks holidays.

1. From the main menu, select "Change Date" and set the Pay Period End Date to Friday 22 Dec 2023 (the normal pay period end date in this example).

2. Go to “Enter Current Pay” and select the employee.

3. Click on the "TimeSheet" tab or in the top area of the payslip summary.

 

4. The week ending Friday 22 Dec 2023 will be showing. You can add extra weeks in two ways.
     Either click the “extra weeks...” button above the “Day and Date” column or click “Days/Weeks to show” at the bottom of the grid and
     select “Add/Remove extra weeks for Holiday Pay”.

 

5. Select “Show 3 extra weeks after the pay period end date” and click “Yes”. The additional 3 weeks will now be showing in the grid.
     For your own case of course it would be a different number of weeks.

6. HINT - to see more weeks on a smaller screen click on the magnifying glass at the top right.

     This can be clicked a second time to revert back to your normal window.

 

7. Enter any normal hours worked from the 18th to the 22nd of December.
     Next, move down to Monday 25 December and under the green “Description” heading, type P for  “Public Holiday”.
     Alternatively you can double-click under the "Description" on the 25th to see a list of leave types.

 

8. The Relevant Daily Pay window will appear. In most cases the highlighted option will be the correct one.
     Click Yes to accept.

 

9. Move to the next public holiday (in this example - Tuesday 26 Dec 2023) and enter P again. If the employee works regular
     hours and the same hours each day, the $ amount you selected previously will automatically be filled in. 

 

10. Scroll down to the next day (in this example Wednesday 27 December 2023) and under the green “Description” heading, type H for  “Holiday Pay”. 

 

11. The Annual Holiday Pay Rate window will appear. In most cases the highlighted option will be the correct one. Click Yes.

 

12. Now enter H on the next lines for days which are not public holidays.
       The amount per day will be filled in automatically using the Holiday Pay rate entered above.

13. Enter P for Public Holiday on the next public holidays (in this example January 1st and 2nd)
       and H for Holiday Pay for the remaining days of the last two weeks.
       In most cases you should not need to keep selecting a rate - just enter the leave code - P or H - for fast data entry. 

       You will end up with something like this:

14. Click Save. If you have selected to show a full breakdown of days on the payslip, you can turn this option off for this particular pay run if you think it
       will make the payslip hard to read. You Do this by locating “To Show On Payslip” in the box to the right hand side of the Payslip Tab, and remove
        the tick from “Individual Days”.

15. Because you entered the Holidays for each day, when records are updated, the dates and amounts for Holiday Pay are automatically recorded.

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Entering two or more weeks of Holiday Pay in one line.

 

The following is NOT a recommended method, because it is difficult for a computer program to work out which days are before, and which days are after, the pay period end.

(B) Entering Holiday Pay as single total in one line.

If you do not wish to separate holiday pay out into individual days, you could add a line at the bottom of the single week (i.e. do not add the 3 weeks), and enter the full number of Holiday Pay days on that one line.  To do this:

1.  Go to the last line (eg click on Fri 22 Dec 23 to select it) and click “Add new line for Fri 22/12/23”

 

2.  In that new line, go to the Description column and type H for Holiday Pay.
Alternatively, you can double-click under the "Description" to see a list of leave types.

 

3.  Select the required rate, and enter the number of days (for example 11 days) in the Units column.

4.  You could also process the “Public Holidays” the same way, by adding another line.

 

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