3. Automating holiday pay

Steps to automation

The main consideration is how holiday bookings will be entered. You have three choices depending upon preference:

Holiday system used todaypaiyroll®
AWe have no booking system or happy to changeIncludes mobile booking and approval functionality as part of the system for
BWe use a booking system today – do not want to changeIntegrations can automatically import your bookings
CWe use paper recordsYou simply enter approved bookings manually

Note: A and B require the least work, but you can change approach at any time.

Automating Holiday pay with paiyroll®

The easy way to implement the new legislation is to use a cloud-based system to automate the entire holiday pay process. paiyroll® works as follows:

  1. Workers enter a holiday request on any device
    Book Holiday
  2. A manager approves or denies the request from their device
  3. Approved holiday bookings automatically form part of the payroll (A, B) or entered (C)
  4. The payroll software would automatically calculate holiday pay in the next pay run according to the new 52-week holiday pay reference period rules
  5. Holiday pay is included in the next payroll together with all required reports.

Holiday pay is then simply another automated calculation in payroll in the same way that PAYE, NIC or Auto-enrolment are today😀

Questions to ask when choosing new payroll software for holiday pay

  • Can Workers enter a holiday request on a mobile device?
  • Can Managers approve a request from their device?
  • Do approved holiday bookings automatically form part of the payroll data, or automatically imported?
  • Does the payroll software automatically calculate holiday pay in the next pay run according to the new 52-week holiday pay reference period rules?:
  • Can the definition of a week be customised e.g. Saturday to Sunday or the normal day of the week for weekly pay schedules
  • Does it record every payment made by date to be able to perform the required weekly calculations?
  • Can the software import 104 weeks of historical pay data (critical otherwise you will need to wait for 2-years to be compliant)?
  • Can the software support fixed and no fixed hours working patterns?
  • Can the software import data from existing payroll, HR, CRM or ERP systems?
  • Does the software allow you to specify only the Pay Items that need to be included in the holiday pay calculation?
  • If you pay monthly, 2 or 4-weekly, does the payroll software record weekly data, or provide a method to create/convert weekly data?
  • Does the payroll software maintain records and reports for each holiday booking?
  • Does the software support both accrual and entitlement methods?

The answer to these for paiyroll® is yes 😀

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