Configuring average holiday pay

  1. Open the required company.

  2. Go to your company name > Edit Employer .

    Employer menu - edit detials#

  3. Select Leave.

    Select Leave.

  4. Select Add Holiday Scheme.

    Select a current holiday scheme to edit.

  5. Complete the information.

    Complete the information - the fields are listed next.  

To choose the items included in the holiday scheme calculation. De-select Use NI'able pay and choose the required pay code set.
Pay item with deslect showing for Use NI'able Pay

Item Description
Scheme name Give the scheme a name, you can have multiple schemes. These are assigned to the employee.
Weeks for average calculations Defaults to 52 weeks. See Guide to average holiday pay
Use only paid weeks If selected, only paid weeks are used for the average weekly earnings calculation. Unpaid weeks are skipped.
Ignore where SXP is Present If selected, periods containing statutory payments (SMP Statutory Maternity Pay is the pay an employer must give to female employees on maternity leave, for up to 39 weeks., SSP Statutory sick pay refers to the pay an employer must give you if you’re too ill to work. It’s paid to you by your employer for up to 28 weeks, based on certain eligibility criteria - the cost of SSP is no longer able to be recovered - SSP is no longer reported to HMRC on your EPS submissions, SAP SAP or Statutory Adoption Pay. If an employee is adopting a child with a partner, one of them may be entitled to SAP and the other may be entitled to Ordinary Statutory Paternity Pay (OSPP). SAP usually follows the same basis as SMP in terms of amounts of length of time. etc) are ignored.
Calculation in Hours / Days How the enhanced rate is calculated.
Use NI'able pay If selected, all elements subject to national insurance A system of contributions paid by workers and employers in the UK, which funds various state benefits, such as the State Pension and Jobseeker's Allowance. will be used to calculate the average earnings.
Use working pattern for hours calculation If selected, the working pattern will be used to calculate the average earnings. If unselected, a pay code set will be required.
Use Hourly Rate (where average rate is lower than normal hourly rate) If selected, and the average holiday If an Employee's work has no fixed or regular hours, their holiday pay will be based on the average pay they received over the previous 52 weeks (or a average based on the available number of weeks if less than the full 52. pay rate is lower than the normal hourly rate, the hourly rate is used.

  1. Select Create.

    Calculation in Hours / Days will always calculate in hours. Days is coming soon and does not work.