Setup Holiday Pay

Setup Holiday Pay

Nxsys Umbrella supports two Holiday Pay methods 

  • Advanced
  • Retained

In the Advanced calculation, Nxsys will calculate Holiday Pay for that tax period and pay it out to the worker in the same tax period 

In the Retained calculation, Nxsys will calculate Holiday Pay for that that tax period but will not pay it out to the worker in the same tax period instead it will create a Holiday Pay Pot where these amounts are stored and will be paid to the worker at a later date 

There are three main settings when setting up Holiday Pay

  • Holiday Pay Method (Advanced, Retained, No Holiday Pay)
  • Holiday Pay Rate (default rate is 12.07% and can be changed by you)
  • Holiday Pay Calculation Rule (NMW, All Earnings)

 

To enable Holiday Pay calculation for your payment model follow the below steps 

  • Open your company
  • Click on Payment Models
  • Click on either PAYE or Umbrella
  • Select the relevant Holiday Pay method, rate and calculation rule
  • Click Save

 

IMPORTANT NOTES: In the umbrella payment model you will notice an additional setting names "Accrue Employment Costs". By default this setting is set to YES. 

If this setting is set to YES, when Holiday Pay is set to retained for an umbrella worker, Nxsys will automatically calculate the associated employment cost at the time or retaining Holiday Pay and will automatically pay out the relevant employment costs when this Holiday Pay is eventually paid out 

If this setting is set to NO, when Holiday Pay is set to retained for an umbrella worker, Nxsys will  not automatically calculate the associated employment cost at the time or retaining Holiday Pay instead the employment costs will be calculated and paid when this Holiday Pay is eventually paid out 

When you enable Holiday Pay for PAYE, you will notice another setting "Included in timesheet rate". Select the option most relevant to you

  • Yes - If selected, Nxsys will assume the timesheet already includes an element of Holiday Pay 
  • No - If selected, Nxsys will assume the timesheet doesn't already include an element of Holiday Pay and will calculate Holiday Pay over and above the timesheet value



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