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Holiday pay for casual workers

Do you manually adjust hourly pay for holiday accrued?

I process the payroll for a bar with casual staff.  They only provide the hours and these exclude any holiday.

I understand that I can just gross up the monthly pay by 12.07% to add the holiday accrual each month.

Do others use this method?  Also I can't see anything which suggests that casual workers are not entitled to holiday pay even though it does not appear my cleint was paying this in the past.

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22nd Mar 2018 09:52

Yes. I don't like it but I have a client whose employees have irregular hours and I can't think of a better way. Moneysoft will keep a track for you. No doubt other softwares have this too.

Not sure what you mean by "grossing up" though. You need to just set aside 12.07% (I think, strictly, it's 12.08%, as 12.07% is less than the minimum) and pay the employees from that fund when they have time off. It's not just about having holiday pay. It's about having holidays.

Having said that, I've not had a case where that point has been taken and I'd be interested to know if any others have.

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By Matrix
to lionofludesch
22nd Mar 2018 10:09

Thanks Lion. Do you know how I do this in Moneysoft please? I have never used it for holiday pay.

The employer does not advise me when the employee has time off, they just work irregular hours, so I was just going to add this amount each month.

I got the 12.07% from my advice line.

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to Matrix
22nd Mar 2018 10:51

12.07, 12.08 - it's buttons anyway.

Click on the holiday pay tab in Moneysoft and off you go.

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22nd Mar 2018 10:29

Rather than add 12.07% to pay, work to hours. So, if an employee does 100 hours in a month, that employee will become entitled to 12.07 holiday hours.

Set up an extra Hourly Pay column called "Holiday" with the same rate. Enter the 100 hours in the normal "Hourly" column and 12.07 in the "Holiday" column and you will have a record showing holiday paid.

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By Matrix
23rd Mar 2018 07:02

Thanks for all responses. I will take a look at the holiday pay in Moneysoft.

I also need to check my terms for payroll services. My view has always been that I just process the pay provided by the client. Now that it looks as if there is holiday missing for a casual worker then do I just add the holiday or only if my client asks me to do so? I have advised them that it is statutory.

Does everyone else add it automatically for workers paid hourly?

Any responses will be helpful in deciding whose responsibility it is to ensure holiday pay is paid since I may need to update my terms.

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to Matrix
23rd Mar 2018 10:16

I don't keep a track of holidays as a rule. There's just this one with the irregular hours.

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