52 week Average Holiday Pay

[NirtacISC]

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.

 

[Newchodge]

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.

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.

 

[NirtacISC]

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.

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?

 

[WaveJumper]

https://www.gov.uk/calculate-your-holiday-entitlement

 

[Newchodge]

The entitlement (amount of time due) is based on their contract. Their pay is based on the 52 week average.

 

[IanSuth]

The entitlement (amount of time due) is based on their contract. Their pay is based on the 52 week average.

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