One of the many reasons for purchasing payroll software is the calculation of holiday pay. This can be time-consuming if you are processing your payroll manually and consequently is often only paid at the current rate of pay.
When an employee takes leave, according to the Holidays Act 2003, they must be paid at either:
Their employees ordinary rate of pay or the average rate of pay calculated over the past 52 weeks, whichever is the greatest.
If your employee works irregular hours or days making it not possible to determine their ordinary pay, you would take the average over the previous four weeks, and use this rate as their ordinary rate of pay.
FiveStar Software Ltd’s ‘Payroll Pro‘ makes all these calculations for you and highlights the most relevant rate of pay for your employees. If you are looking for an easy to use payroll package with instructional videos then click HERE!
