Q. How do you add Holiday pay automatically in Payroll?
A. Holiday pay can be automatically be added within the weeks payroll. Just follow these steps:
- Add a new payment line – it MUST contain the work Holiday to work (i.e. Holiday pay)
- Put the weekly rate in the rate box and number of weeks being paid in the time box.
- When the payroll run is made it will ADD the number of weeks in the holiday pay to give the tax allowances to include holiday pay.
- So for example if we are running week 20, and somebody is on holiday for 2 weeks – the the tax code will be extended to period 22.
- Also the additional weeks will be added to the NI computation, so that it will average the pay rather than compute the additional pay