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Paying Out Holiday Pay

 

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(A) Paying Holiday Pay


Paying as normal sequence of payruns

You can pay each week of 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) one after the other as usual. If you are closing down you can still process all the pays beforehand. 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.

Example:
You might process all the following pays on the same day (say Monday 23rd December 2019) as four separate payruns. It does not matter that you are processing these on the 23rd December yet entering the following future dates into Payroll Pro.

Week Ending Payment Date Pay Details Payday Filing
Fri 20th Dec 2019 Mon 23rd Dec 2019 40 hrs worked On 23rd December
Fri 27th Dec 2019 Mon 30th Dec 2019 16 hrs worked, 2 public holidays, 1 day holiday pay On 23rd December (or later)
Fri 3rd Jan 2020 Mon 6th Jan 2020 2 public holidays, 3 days holiday pay On 23rd December (or later)
Fri 10th Jan 2020 Mon 13th Jan 2020 5 days holiday pay On 23rd December (or later)
Fri 17th Jan 2020 Mon 20th Jan 2020 2 days holiday pay, 24 hrs worked On 23rd December (or later)

 

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Paying all in a single pay run

It is also possible to enter 3 or four weeks as a single pay run. This is explained as follows.

Week Ending Payment Date Pay Details Payday Filing
Fri 20th Dec 2019 Mon 23rd Dec 2019 56 hrs worked, 4 public holidays, 9 days holiday pay On 23rd December
Fri 17th Jan 2020 Mon 20th Jan 2020 2 days holiday pay, 24 hrs worked Within two days of 20th January

 

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 16 Dec to Fri 20 Dec 2019, 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 16 to 20 December plus the 3 weeks holidays.

1. From the main menu, select "Change Date" and set the Pay Period End Date to Friday 20 Dec 2019 (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 20 Dec 2019 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 16th to the 20th of December.
     Then move down to Monday 23 December 2019, and enter 8 hours (the hourly rate will appear automatically when you enter some hours).
     Then move down to Tuesday 24 December 2019, and enter 8 hours.
     Next, move down to Wednesday 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 - Thursday 26 Dec 2019) 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 Friday 27 December 2019) 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.  You will notice that on the payslip page the 'period covered' says "(auto)". This just means that the number of weeks after the end of the
       period is not relevant, since this amount is taxed at a flat rate.
       If you have selected to show a full days breakdown 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.

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 (ie 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 20 Dec 19 to select it) and click “Add new line for Fri 20/12/19”


 

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 9 days) in the Units column.

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

Note in the above that the two days Mon 23rd and Tues 24th have not been entered yet. You should add two more lines and enter these. Then change the days from 18 to 20. This shows why this method is not recommended - it is easy to make a mistake.