The HP transaction can be used to pay a person Holiday Pay.
Holiday Pay is usually paid at the end of a fixed term contract, or when a person leaves and receives their final pay.
To pay Holiday Pay:
- Go to the person's timesheet
- Enter 1.0 in the Quantity field
- Select HP from the list, and press the Add button.
The person's Annual Leave balance will be decreased to reflect this Holiday Pay paid. Their annual leave balance and liability will both be zero after paying Holiday Pay.
Part Payments of Holiday Pay
Instead of entering 1.0 into the quantity, you can enter a decimal fraction to make a part-payment of Holiday Pay. For example, to pay out one-half of a person's Holiday Pay, enter 0.5 into the Quantity.
This will pay out exactly one-half of the person's Annual Leave Liability as Holiday Pay. The person's annual leave balance (in hours) will also be updated to reflect this payment.
A Rate Override can also be used, to pay out a fixed dollar value from a person's Holiday Pay.
- Go to the person's timesheet.
- Enter 1.0 in the Quantity field.
- Select HP from the list.
- Enter the fixed dollar amount to pay in the Rate field.
- Press the Add button.
Short Term Contracts
If a person has a fixed-term contract, they should be set up to accrue Annual Leave like other staff. They will receive an accrual in both hours and dollars each pay, and the value of their Annual Leave Liability will be 8% of their Liable Earnings.
- When they are to be paid Holiday Pay, enter a HP transaction as described above.
- If they receive a part-payment of Holiday Pay, record it as described above.
- If they take Annual Leave, record it as normal.
- If they complete 12 months, they will have a leave rollover. Their Holiday Pay will be converted into an Annual Leave entitlement - as per the Holiday Pay Act.
Note: Even though the holiday pay has been converted into an entitlement, it can still be paid as Holiday Pay - Entitled. - When the person finishes, pay their Holiday Pay as per the normal Final Pay instructions.