Holiday funds are monetary funds accrued over time to cover the cost of employees' holidays. A guide to holiday funds >

You can use Sage 50 Payroll to set up different types of funds, deduct contributions from the employee's salary and pay the money out during the payroll run. Set up a holiday fund >

Once you've set up the holiday fund and assigned it to your employees, you can check the amount in Enter Payments, or check their year to date values.

Check the accrued amount via the Enter Payments option

1. On the Employee List, select the required employee.
2. Click Payroll then click Enter Payments.
3. Enter the employee's pay then click the Information tab.
4. In the left-hand pane, click Holiday Fund.
5. Check the following values:
   • Holiday Fund To Date
   • Holiday Fund Accrued This Period
   • Holiday pay This Period
   • Holiday Fund Remaining

Check the accrued amount via the YTD Values option

1. On the Employee List, double-click the employee.
2. Click the Employment tab then click YTD Values.
3. Click the Other YTD tab then check the Holiday Fund value.

How the calculation works

Your software calculates holiday fund values using the percentage rate you set, against either the employee's total gross pay, or their holidayable pay each period.

 TIP: Holidayable pay is the total pay you process on any pay elements set to Include for Holiday Accrual. Set payments to accrue a holiday fund >

You can check your holiday scheme calculation settings in a few clicks:

1. Click Company then Holidays.
2. Select the relevant scheme, then click Edit.
3. Click the Payments tab.
4. Check the dropdown beside Accrue Holiday Fund As to see whether the scheme calculates using total gross, or holidayable gross.
5. Note the percentage in the box to the right of =Value.

 NOTE: If your holiday fund is set to calculate as An amount, your software uses this value rather without any percentage based calculation.

To reconcile a holiday fund value, calculate the relevant gross value for your employee using the percentage rate you noted.

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