From 6th April 2022, you can choose to use automated Rolled-up Holiday Pay (RHP) for Irregular workers for leave years beginning after April 2024.
Follow this guide to set up automated Holiday pay.
Before starting #
- If you were previously using the Holiday booking/approval process, we recommend that all holidays are booked and approved in any previous pay runs, otherwise, you may have to manually carry over any untaken leave, or operate RHP and Holiday booking in parallel for a period.
- If you are starting this on the 6th of April 2024, ensure you have completed the prior pay run, before following the steps below to set this up.
Create a new RHP Pay Definition #
Company set up > Pay Definitions > +Add… to add a new RHP Pay definition based on the Holiday % pay template.
In the example below the description Rolled-up Holiday Pay (RHP) will appear on all payslips to meet the new legislation:
Click Add to add the new pay definition to your company.
Add RHP to each Worker #
Pay Item Editor > Select one worker – then select this new Pay Item from the Create Pay Item pull down and click + Create:
Once this appears on the worker, click Update.
If they already have some pay, you will see the RHP pay item automatically operate on the mini payslip.
You can either add this Pay Item manually to all workers, or it is much faster to create a Pay Item Upload file if you have many workers.
Making a file to upload multiple RHP Pay Items #
Toolshed > Company create Pay Item uploaders > Run > Create template > Download
This will create an Excel workbook (usually in your Downloads folder), where one of the sheets will be called RHP and include the first worker create above.
Next edit this sheet to add all the workers, for example copying the usernames from another sheet such as AE .
You should have a sheet that looks like this:
Save the workbook.
Upload all RHP Pay Items #
Home > Upload Pay Items > Choose FIle > Upload file to server > Seelct the RHP Sheet > Skip first row: > Pre-process selected data…
Then click Publish… to add the new pay item to all the workers:
Delete any Old Holiday [Booking] Pay Items #
The final step is to delete any old holiday pay definition for each worker if you were previously using this to book /approve holidays.
Once this step is followed, any unpaid approved bookings will not pay out – so be sure to complete any payruns before following this step. It is possible to operate the old holiday booking process and the new RHP if needed.
The quickest way to do this is to delete the pay definition which will delete all the power items in one go.
Company set up > Pay Definitions > search for the Holiday Pay definition
Click Delete. You will see a warning below that confirms you are deleting the dependent pay Items:
Confirm deletion
Verify #
RHP is now set up and will operate completely automatically. On your next pay run, check that everything is correct and that 12.07% is being added to each worker.
Holidayable Earnings #
The basis value used for calculating 12.07% is the Holidayable Earnings bus—this is selected on all Pay Definitions that contribute to the basis value.
If you need to change this basis to include or exclude specific Pay definitions, select or un-select the Output of that Pay Definition. For example, if you do not want commission payments to contribute to RUH, you would need to un-tick the holiday earnings output on the Commission Pay Definition:
To see all the current Pay Definitions that contribute to Holidayable earnings, look at the latest Pre-approval summary2 – last sheet called Pay definitions. Hide all columns except Holidayable earnings. It may help to use Auto-filter to hide all the blank rows to see all the current pay definitions that contribute.
This then forms a guide to direct you quickly to any Pay Defintiuosn to exclude holidayable earnings. Similarly, if there are pay definitions that do not currently contribute, those will be blank rows, you can edit those accordingly.
If you have a large number of pay definitions to edit, for example, shifts or overtime, you can edit one and follow the steps here to complete the others via bulk upload.