Quickpay. Holiday Processing. Payment Setup
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- Kelly Rudolph Barton
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1 Holiday Processing Before processing holidays in Quickpay the company payments need to be set up correctly. The holiday pay an employee receives can be set up in two ways:- 1. Automatic Holiday Pay: Let Quickpay determine how much extra pay the employee receives depending on the how long they will be on holidays. The extra pay is calculated automatically but will not appear as a separate holiday pay entry on the payslip, instead it will increase the employee's normal wage. Available only on weekly and fortnightly payrolls and for employees who are not hourly paid. 2. Manual Holiday Pay: Enter the employee's regular wages on the timesheet and then enter the holiday pay as an additional pay element. This way the holiday pay can be seen on the payslip. It may also be useful from a reporting perspective where holiday pay and regular wages need to be recorded separately. In Quickpay all hourly paid employees will require holiday pay to be entered manually. Select Company/Payroll Setup- Payments & Deductions Payment Setup Automatic Holiday Pay Any allowances to be increased automatically as part of holiday pay should be marked with Y ' under the Holiday column. Allowances that do not increase when an employee goes on holidays should be left blank or marked with 'N ' under Holiday. In general only fixed payments should be selected under Holiday. In the example below Salary is the only payment that will increase for holiday pay because the employee receives this regularly. Bonus is a payment that may not be applicable for every pay period so it is marked 'N' to prevent it being increased automatically if the employee does go on holidays.
2 Manual Holiday Pay When processing holiday pay manually it is simpler to set up separate holiday pay elements. It is important that all allowances are marked with 'N' under Holiday to prevent them from being increased by Quickpay automatically after an employee is put on holidays. In the example above there is an hourly payment called Hol Hrs for the hourly paid employees and an allowance called Hol Pay for the salaried employees. The titles of these payments can be whatever you choose. Timesheet Entry To put an employee on holidays use the Holiday Periods field on the Timesheet Entry screen. It is available on weekly and fortnightly payrolls only and should only be used when the employee receives their holiday pay in advance. Enter in here the number of pay periods that the employee will be on holidays for. Quickpay will automatically allocate the extra insurance weeks and tax credits as appropriate. Payments will be increased automatically if set up to do so on the Payments / Deductions screen as described earlier. Only deductions with fixed amounts set up in the employee's record will be increased. Below are examples of timesheets before and after holiday periods are entered. Timesheet Entry for Automatic Holiday Pay 1). Before holidays periods entered:
3 2). After holidays periods entered: In the above example the employee is put on one week of holidays by entering '1' in the Holiday Periods field. Salary, Pension and Insurable Weeks are all increased automatically. Enter '2' in Holiday Periods if the employee is going on two weeks of holidays, and so on, and Quickpay will increase the other values accordingly.
4 Timesheet Entry for Manual Holiday Pay: 1). Before holiday periods entered: 2). After holiday periods entered:
5 In the above example the employee is put on one week of holidays by entering '1' in the Holiday Periods field. Pension and Insurable Weeks are increased automatically but Salary is not because it is not setup to do so in the company Payments / Deductions screen. The holiday pay needs to be entered manually like in the example below. Hourly payments do not have the option of automatically increasing for holidays. Holiday pay must either be processed as a separate payment as in diagram, or by increasing the basic hours as in diagram
6 Holiday Periods must only be used where an employee is getting their holiday pay in advance. This is because Quickpay cannot process a timesheet for an employee while they are marked as being on holidays. By setting holiday periods as '1' Quickpay will not process a timesheet for that employee for the following period because they will have received their holiday pay already. For example, on period 4 of a weekly payroll, an employee is being paid their normal week's wages along with 2 weeks of holiday pay. By entering '2' for holiday periods this employee cannot be processed for the following 2 weeks for periods 5 or 6. If the employee is receiving holiday pay but not actually going on holidays then it is important that holiday periods is left blank with just the holiday pay entered manually. Otherwise it will not be possible to process a timesheet for the following period.
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