I recently posted a question on here about setting up holiday accruals in QB payroll but didn't get any answers. It occurred to me that either no one else is using QB payroll or maybe no one manages employees' holiday in their payroll software. I am actually thinking it would just be easier to keep a spreadsheet of what has been taken and then just pay it using a holiday pay item instead. What does everyone else do?
Hi - are you accruing for Holiday in accordance with Working Time Directive? Or is it a company scheme?
I run a payroll for Temps using industry specific software which accrues for holiday days and holiday pay in accordance with WTD, but I have also set up an excel spreasheet for another company that didn't have software to deal with it. By putting in the Employees wages each week it worked out how much holiday pay was accrued that week, provided a YTD figure and functionality to enter when they have had holiday etc. It was a bit of a slog having to update it each week.
For another of my payrolls that has permanent staff, all with a set amount of holiday I run an excel spreadsheet with a page for each month with totals on it (using count if) and a summary sheet that gives a YTD overall view. I also record all the sickness on the same spreadsheet.
I'm not familiar with QB but we used Iris and I had to set up a spreadsheet to keep track of holidays accrued/taken as most employees were casual and their holidays were calculated hourly. I would then manually work out the entitlement and enter in to the holiday pay tab. My spreadsheet was quite basic but did the job as long as I input the weekly hours. I found it quite time consuming which is one of the main reasons we have switched to 12pay for this year.
I have the opposite. I have someone who is getting statutory holiday of 28.5 days, works 9-6. Quickbooks wants to accrue it in hours. I would rather allocate him his 28.5 days as he won't take time off by the hour. I'm not sure how to work out how many hours he would be entitled to. I have another client who pays hourly and their staff get their holiday paid as a percentage of their pay every month. they are on zero hour contracts and work irregular hours. I'm not convinced that QB caters for all people. I'm only just starting out with payroll so don't know as much as I probably should at this stage so any more info from anyone else would be really helpful.
Hi - re the first case, 28.5days, works 9-6. If this person works 5 days per week form 9-6 with 1 hour break, then it will be 8 hours per day x 28.5 days holiday = 228 hours holiday per year. When they take a days holiday I would guess you put them in for 8 hours holiday pay? (Just one observation, statutory holiday is 5.6 weeks which on a 5 day week is 28 days, so not sure where the extra 0.5 days has come from?). Sorry, I've not ever used QB payroll.
Re your client who has hourly paid staff - are they paying their staff for holiday as and when they take their leave, or are they making them a payment each month in lieu of holiday pay, ie rolling up their holiday pay? If they too are on 'statutory' holiday, ie 5.6 weeks which is the minimum people are entitled to then you need to accure holiday pay at a rate of 12.07% of their pre overtime earnings. The WTD has been updated to allow overtime to be included in the calculation but it is down to the individual contract to establish that point. I always explain it that if you were in full time permanent employment and had a weeks holiday then you wouldn't expect to get overtime paid for that week even if you normally work overtime every other week - that usually satisifies anyone who queries it.
You're right, it is 28 days. I'm not sure where I got the extra 0.5 from either. I know it's 28 days, I have a piece of paper on the notice board next to me saying it. I clearly need the school holidays to end and for my son to go back to school so that I can concentrate! I think I am overcomplicating things but it's because these are my first payroll customers and it's nice to have some reassurance.
I have been doing the 12.07%, good to know I've got something right. They have varying hours so I've been doing 12.07% of whatever they have worked in that month.
