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HomeHomeSupportSupportAbsencesAbsencesInputting ireggular daily hours for holidays.Inputting ireggular daily hours for holidays.
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03/01/2010 11:52
 
Edita
10th Level Poster

Joined: 16/07/2009
Posts: 5

Sorry about the title. Didn't know what to put for it.

I have no idea how to input holiday entitlement into 12Pay and I am unable to find a video which explains it. The problem is that we are running a hair salon and the staff we have work up to full time weekly. They get paid weekly and work different hours per day depending on the day of the week. If they take a thursday for holiday therefore they would be taking more hours holiday than if they are taking a friday.

What I want to do is record their holidays on theirr payslips in hours available and taken to make things perfectly clear. I can't seem to do this. This is my first business, and first employees, and first time I have wanted to include their holiday on the payslip. It's very confusing.

Any simple explanation for a 'typical hairdresser' :)

Cheers.

Edita.
 
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03/01/2010 18:03
 
SuperUser Account
7th Level Poster

Joined: 13/02/2007
Posts: 48

Edita, The key things are:

  • You must enter the actual number of hours worked each week (obviously, without that information the system cannot keep track of entitlement)
  • You enter holiday pay hours using the Holiday Pay code when you pay holiday. The system can calculate the rate at which such hours should be paid automatically, based on the weighted average of the last 12 weeks pay.
  • You set up the payroll holiday year on the payroll Advanced tab
  • You ignore the greyed out holiday fields on the HR tab for hourly paid employees, those fields are for salaried staff
  • You can report holiday hours information on the payroll report Annual Hours Summary . This report shows 3 lines for each employee:
    • The top line is the number of hours worked in each calendar month in the holiday year
    • The middle line is the resulting number of holiday hours (12.1% of hours worked)
    • The bottom line is the number of holiday hours paid, this number is automatically subtracted from the middle line so that you can keep track of net entitlement.
  • Payslips can show holiday accrual information by selecting holiday text on the payroll "Reporting" tab. Pick one of the "Accrued" styles, such as "Accrued Percentage of Hours"

When you've given it a try that may give rise to some more specific questions.
 
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18/01/2010 22:10
 
Michael Jenkins
7th Level Poster

Joined: 13/12/2007
Posts: 42

This answer is fine for applying an average rate, but what about working out the average hours.

Is there a simple way of calculating how many hours are represented by a holiday day or week? Should it be based on the average hours per week, year-to-date? Or the last 12/13 weeks, like SSP?

Is there a report that provides these figures?

Michael
 
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19/01/2010 09:22
 
12Pay Support
2nd Level Poster

Joined: 13/02/2007
Posts: 1219

We aren't aware of any BERR sanctioned method of calculating how many hours make up a day, or a week.

The software calculates your obligation to the employee in terms of the number of paid holiday hours you owe them and the rate they should be paid at. The number of days that the employee should take off to enjoy their holiday hours is a matter between you and them. Typically when you have employees on these kind of irregular arrangements there are plenty of days that they don't come in to work... who is to say whether those days are holiday or not?

EDIT: If you want an objective calculation you could divide the number of hours worked so far in the year (as shown on the annual hours summary) by the number of weeks so far in the year. That would give you a figure for hours worked per week. How many hours per day that equates to would depend on the employees "usual" working pattern, if there is any such thing. The software has no real way of assessing that.

12Pay Support
 
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19/01/2010 20:43
 
Michael Jenkins
7th Level Poster

Joined: 13/12/2007
Posts: 42

Thanks for the prompt response.

My problem is that my client's employees work irregular hours. Therefore, the accrued time basis is appropriate. However, my client then tells me that an employee has "1 week's holiday" which, as you noted, is a variable figure and will change during the year. I didn't think there was a "12 week average" rule, and I ended up using the annual hours report as you suggested. That led to the additional question of someone who starts part-way through the year!

Thank you for looking, anyway.

Michael
 
New Post
10/07/2011 14:20
 
Chris H
10th Level Poster

Joined: 22/01/2011
Posts: 5

Hi

Searching for an answer to my question I found reference to "based on the weighted average of the last 12 weeks pay" in this thread.

Basically, I have staff who work irregular hours (Monday through Sunday) and I've set the system to calculate holiday entitlement as 12.1% of hours worked which is fine - and the system calculates the hourly rate for hours taken as holiday, which is fine...

But in the contract of employment for my staff I am trying to explain holiday entitlement and how the hourly rate for holiday is calculated... Please can you explain the algorithm for calculating the "weighted average over the last 12 weeks pay", so I can reflect this in the contract.

Thanks

Chris

 

 

SuperUser Account wrote:
 

Edita, The key things are:

  • You must enter the actual number of hours worked each week (obviously, without that information the system cannot keep track of entitlement)
  • You enter holiday pay hours using the Holiday Pay code when you pay holiday. The system can calculate the rate at which such hours should be paid automatically, based on the weighted average of the last 12 weeks pay.
  • You set up the payroll holiday year on the payroll Advanced tab
  • You ignore the greyed out holiday fields on the HR tab for hourly paid employees, those fields are for salaried staff
  • You can report holiday hours information on the payroll report Annual Hours Summary . This report shows 3 lines for each employee:
    • The top line is the number of hours worked in each calendar month in the holiday year
    • The middle line is the resulting number of holiday hours (12.1% of hours worked)
    • The bottom line is the number of holiday hours paid, this number is automatically subtracted from the middle line so that you can keep track of net entitlement.
  • Payslips can show holiday accrual information by selecting holiday text on the payroll "Reporting" tab. Pick one of the "Accrued" styles, such as "Accrued Percentage of Hours"

When you've given it a try that may give rise to some more specific questions.

 
 
New Post
10/07/2011 22:41
 
Tom McClelland
7th Level Poster

Joined: 13/02/2007
Posts: 36

The system adds up the total pay for the last 12 weeks, and divides it by the total number of hours worked for the last 12 weeks, to arrive at the weighted average for the hourly rate over the last 12 weeks. Business Link recommends this as a fair reflection where employees work hours at different hourly rates.
 
New Post
11/07/2011 14:47
 
Chris H
10th Level Poster

Joined: 22/01/2011
Posts: 5

Thanks for the prompt reply Tom.  Ok, that's pretty straightforward.

In the case where there's either fewer than 12 weeks of data (new employee) or some weeks in the previous 12 where no hours were worked - how does it cope with these scenarios?

Thanks

Chris
 
New Post
12/07/2011 09:42
 
Tom McClelland
7th Level Poster

Joined: 13/02/2007
Posts: 36
Chris H wrote:

Thanks for the prompt reply Tom.  Ok, that's pretty straightforward.

In the case where there's either fewer than 12 weeks of data (new employee) or some weeks in the previous 12 where no hours were worked - how does it cope with these scenarios?

Thanks

Chris

 It just looks at whatever data is there within the last 12 weeks, and divides total earnings by total hours worked, which should give a reasonable average pay rate in most cases.
 
New Post
12/07/2011 12:55
 
Chris H
10th Level Poster

Joined: 22/01/2011
Posts: 5

Thanks for the clarification; that's fine. That's all I need to know! :)
 
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