payback.ie

Holiday pay in Payback exists for two main reasons;

1) To ensure you don't pay the employees by mistake while they're on holiday
2) To ensure that your employees get the correct amount of tax credits, cut-off point and insurable weeks when you're paying them in advance

It has the added benefit of allowing you to keep track of holidays taken.

Scenario
A weekly paid employee who is paid every Wednesday is going on holiday for 2 weeks from the 7th April 2008 to the 18th April 2008. They want their 2 weeks holiday pay in advance to be included in their pay for the 2nd April

Requirements
1) You need to pay them 3 weeks worth of pay on the 2nd April payroll run (the current week, plus 2 weeks in advance)
2) They should get 3 weeks worth of PRSI insurable weeks, tax credits and cut-off point on the 2nd April
3) You need to ensure they don't get paid on the 9th April or the 16th April runs

Method
- In the Payroll screen, select the required employee
- On the Elements tab, select a blank row, select 'Holidays', and click the 'View' button on the right of the grid. The 'calculate leave' pop-up box will appear.
- Highlight the weeks they are on holiday for. In this example you should highlight all the days between the 7th April - 18th April inclusive.
- Ensure 'Insurable weeks' says '2'
- Click 'Ok', this returns you to the Payroll screen
- Ensure the Holiday Pay and the Salary is as required. Also, that the 'Insurable Weeks' at the bottom says '3' (this week plus the 2 holiday weeks)
- Pay the employee as usual

You will also notice that for the following two pay runs (16th April and 23rd April) the employee is in green, indicating they are on holiday and will not be paid.

Hi!
I have an employee going on holiday for 1 week from 21/04/08. I follow the steps above. However the 'insurable week' at the top is 2 and at the bottom is 3. Shouldn't the 'insurable week' appear as 2 in both for it is only a week holiday? (this week plus next week makes it two insurable weeks)

2)do i have to change insurable weeks 3 to 2 at the bottom of the screen manually?
Wait for your reply to do the wages.

Thanks for your help!

Hi hana,

Yes, you should change the insurable weeks to the correct figure manually in this case.

Payback attempts to calculate the insurable weeks based on the holiday days you mark, but you should confirm the number is correct before paying the employee and change it if it doesn't look right.

Regards,
John.

Hi John,

I corrected it as you recommended (to 2) however the T.C and SRCOP were calculated based on three weeks hence Nett figure greater than Gross. (these guys don’t have any refund due from previous periods).

At that stage I had no option but to prepare the pay slip as normally would, pay last week and pay this week and produce two payslips.

Tried to see at what point was it changing in to 3. Any day selected after 21/04 would automatically change the lower screen in to 3 even though the Pay Day is Friday. I could not figure it out.

I really appreciate if you give me an answer to this, i want it to work .

Kind regards,
Hana

Hi Hana,

Payback is in fact doing the 'insurable/tax' weeks calculation correctly, although it might seem counter-intuitive. The reason for this is the way the Revenue tax calendar works.

The tax calendar in 2008 started on Tuesday 1st January. So, the tax/insurable week runs from Tuesday to Monday. (The day you're paying your employees is irrelevant)

If you go into the holiday screen, and select for example, a sequence of 5 days from the Monday 21st April to Friday 25th April, you are spanning 2 tax weeks; Week 16 which runs from 15/4 - 21/4 and Week 17 which runs from 22/4 - 28/4

I've discussed this with the developers and since in practice many people treat tax/insurable weeks as running from Monday-Friday we will change the interface in the next version to allow users to over-ride both the tax and the insurable weeks presented in the holidays dialog box.

Regards,
John.