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HomeHomeSupportSupportCalculationsCalculationsHoliday Pay for LeaversHoliday Pay for Leavers
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20/11/2009 10:18
 

Dear Support....

Hope you are well? I have two queries.

Employee 1. Is due 20 days holiday will he pay extra NI when i process this amount as it works out nearly four times as his normal weekly salary?

Employee 2. Is being made redundant the employer is paying him until the 25th December but he is leaving today. He is due 7 days holiday +5 weeks pay up to the 25th DEc. Again if i process this today will he pay extra tax and NI?

Thank you

Amanda

 
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20/11/2009 10:45
 

Amanda,

You can give multiple weeks of NI allowance with a single week's payments if you wish. But only if the employee is not being paid for that same number of weeks, of course.

You do this by entering the number of additional weeks in the "Holiday Weeks" box on the employee's current week tab.

That box has several effects:

  • All standard payments to the employee are multiplied up by the number of additional weeks (If you don't want this to happen then you have to reduce the standard payments to zero and make all payments through the current week tab)
  • NI allowances are multiplied by the number of additional weeks
  • Employees with week 1 tax codes get their allowances multiplied by the number of additional weeks
  • Employees with cumulative tax codes get the PAYE calculated as if the payment were in the last holiday week.

12Pay Support
 
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