52 week Average Holiday Pay

Discussion in 'Employment & HR' started by NirtacISC, Jul 27, 2021.

  1. NirtacISC

    NirtacISC UKBF Newcomer

    2 0
    Employees' holiday pay has to be calculated over 52 weeks and has to not include any weeks where the employee has worked less than their normal hours (sickness and as of the last year, furlough).
    I'm struggling to find an easy way to calculate this using our current software which is Sage 50 Payroll, as there isn't a report which will allow me to put a 'from and to' date for average hours and average earnings.
    For example, when an employee that was on furlough is on holiday, the Sage 52 week averages report will include the furlough hours and pay. To discount these weeks i must run several other reports and enter them into a spreadsheet to find the average.
    I would be interested to know how other payroll clerks calculate the holiday pay and what software is best for this aspect of payroll. Also how do you enter it on their payslip.
    Thank you.
     
    Posted: Jul 27, 2021 By: NirtacISC Member since: Jul 27, 2021
    #1
  2. Newchodge

    Newchodge Contributor

    15,871 4,466
    I create and maintain a spreadsheet. I don't think any software can do it unless staff are weekly paid and there is an option to exclude a week from the calculation. It is a nuisance. Payslip is simple x hours holiday at y rate.
     
    Posted: Jul 27, 2021 By: Newchodge Member since: Nov 8, 2012
    #2
  3. NirtacISC

    NirtacISC UKBF Newcomer

    2 0
    Thank you for your response. Should the holiday pay be paid at just the basic hours of holiday they have taken in that week (at their average hourly rate) or the average hours of holiday for the past 52 weeks?
     
    Posted: Jul 27, 2021 By: NirtacISC Member since: Jul 27, 2021
    #3
  4. WaveJumper

    WaveJumper Contributor

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    Posted: Jul 27, 2021 By: WaveJumper Member since: Aug 26, 2013
    #4
  5. Newchodge

    Newchodge Contributor

    15,871 4,466
    The entitlement (amount of time due) is based on their contract. Their pay is based on the 52 week average.
     
    Posted: Jul 27, 2021 By: Newchodge Member since: Nov 8, 2012
    #5
  6. IanSuth

    IanSuth Contributor

    438 127
    And for any that don't understand the difference - basically the contract defines the number of days, the 52 week average allows you to work out what each of those "days" are in £ terms
     
    Posted: Jul 27, 2021 By: IanSuth Member since: Apr 1, 2021
    #6