Select Settings in the menu bar, then Payments and Deductions.

1. Select Create New Payment, then complete the following information:
   

    

   Payment Category	Select Holiday Pay.
   Payment Type	Select Advance Holiday Pay.
   Name	Type a suitable name for the payment or use the default name.
   Description	Type some explanatory text to make it clear what the payment is for.

2. Select Save.

You can then use this payment and add it to an employee's pay run details.

You pay the employee using your usual payments for the current week.

Pay any further weeks using the Advanced holiday payment.

For example, the employee is off next week and the week after. Pay the current week as usual, and in step 4, enter 2 as the quantity.

1. Process your pay run as normal until the Edit Pay window.
2. Select the required employee.
3. Select Add Payment, then choose Advance Holiday Pay.
4. In the Quantity box, enter the number of weeks the employee will be on holiday.
5. In the Rate box, enter the amount of holiday pay they’re to receive per holiday week.
6. Continue processing your employees’ pay details, and complete the pay run as normal.

 

If you’re trying to pay an employee who has returned from holiday, you may find the payroll stops you.

This is usually because you have entered extra holiday periods in error, and the system assumes they’re still absent.

For example:

• You want to pay the employee for one week they worked, plus one week holiday
• You enter their usual weekly wage, and one week of holiday pay
• The system assumes the Advance holiday payment begins the week following the current week
• The employee doesn't appear as requiring pay when you run payroll next week
• In week 3, payroll allows you to pay the employee their wage again

However, you may have paid two weeks using the Advance holiday payment.

Payroll will assume those two weeks cover next week, plus the week after. The system won't allow you to pay the employee as it assumes they’re still on holiday.

The solution:

1. Select the Pay Runs tab, then open the pay run the advance holiday pay was paid in.
2. Select Edit Pay run, then Edit Pay.
3. Tick I understand the impact of editing a pay run, then select Confirm.
4. Reduce the quantity of the Advance Holiday Payment.
5. Select Save corrections, then Do not show the difference in the next pay run.
6. Continue processing the current pay run as usual, adding the employee's weekly salary.

The net pay, PAYE, etc. should all be the same as the original pay run.

You may still want to give your employee an updated payslip.

Read our article Reprinting Payslips.