When an employee is leaving employment, the annual leave year is ending, or to roll up annual leave within a pay period, you may want to pay any outstanding holiday entitlement.

Adding the pay to the Payslip

This can be done as either an set amount under the 'Additions and Deductions' section or as an hourly rate for the employee.

To pay as a set amount, within the Payroll utility, select the employee from the listing and in the Additions and Deductions section on the payslip > Click 'Add' > Holiday Pay. Then enter the £ amount that is due.

To pay as an hourly rate, first the rate needs setting up in the employee record. Go to Employees > select the employee from the listing > Payment section > under Hourly Rates > 'Add hourly rate'.

Enter the description you want to show on the payslip and the hourly rate. Save changes.

Once saved, go to the Payroll utility > select the employee from the listing > under Pay and Benefits, select 'Add > Hourly Rate'. A new hourly pay line will appear on the payslip.

To change the description on the new line, select the standard hourly rate highlighted in blue text and then choose the rate, ie Holiday Pay:

Enter the number of Holiday Pay hours that the employee is to be paid:

Note: If the employee is on the hourly accrual holiday entitlement method, you will want to ensure that the 'accrues annual leave where applicable' option is unticked on this Holiday Pay rate. You can do this by clicking on the spanner icon on the Holiday Pay line and unchecking this field. If left enabled, the employee will accrue holiday hours on the holiday pay.

Updating the calendar

The employee's calendar will also need updating to reflect the number of days / hours that they are being paid for. 

Go the Employees utility > select the employee from the listing > Calendar. Select the date that the holiday is being taken > 'Annual Leave' on the right hand side > choose the number of hours to be paid. This will reduce the employee's annual leave entitlement by the number of hours that they are being paid for. For leavers or annual year end, you can ensure that the Hours remaining is zero.

If you are rolling up holiday pay / annual leave, you can select just one date within the pay period and then enter the total number of hours / days the employee is being paid for on that one date.

If you wish to run a report for the 52 week average for holiday pay, it will be necessary to use multiple tax years' data. BrightPay can only produce data for the tax year that you are currently using so you would need to select dates within the current tax year and run this report, then go to the previous tax year > select the required dates and run the report. The 2 reports can be exported into Excel format and manually combined if required.