How do I pay holiday allowance?

For employees with holiday terms 20 or 21, you can pay the holiday allowance automatically when they take holiday or as a lump sum, for example before the main holiday period.

Pay the holiday allowance when holiday is taken

Here’s how:

1. Go to Settings - Company settings.
2. Select the Holiday tab.
3. Select holiday term 20 or 21.
4. Select Holiday allowance is paid when holiday is taken out.

The holiday allowance will then be added automatically to the pay run when you register holiday in the calendar.

Pay the holiday allowance for all holiday days at once

You can’t pay the holiday allowance as a lump sum for an individual employee. This setting applies to all employees with holiday terms 20 or 21.

Change the company setting

1. Go to Settings - Company settings.
2. Select the Holiday tab.
3. Select holiday term 20 or 21.
4. Clear Holiday allowance is paid when holiday is taken out.

Pay the holiday allowance

1. Select Payroll - Calendar.
2. Select employees
3. Select a day in the calendar and choose the Holiday shortcut.
4. Select Holiday compensation.
5. Select Payment of holiday allowance.
6. Select Save.

Repeat these steps for each employee who should be paid the holiday allowance. During the pay run, the full amount for holiday days where the holiday allowance hasn’t yet been paid will be added using pay code 9109 – Holiday allowance paid holiday.

Pay part of the holiday allowance

You can’t automatically specify how many holiday days the holiday allowance should be paid for. The Holiday shortcut always calculates and pays the holiday allowance for all holiday days where it hasn’t already been paid, either when each holiday day is taken or as a lump sum.

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