Holiday Pay and Overtime

Good morning,

We have just starting using Sage 50 Payroll and I have read a few discussions/questions on here regarding about how Sage deals with Holiday Pay & Overtime. However I can't see anywhere the holiday fund can be changed to accrue Overtime and Bonus's at a lower percentage rate as per the EAT ruling?

All the help documents you have linked previously, state about the EAT ruling on overtime being only the 4 weeks on holiday, however I can't see this being dealt with at present for a holiday fund approach or if indeed at all? Is there somewhere else I can enter another percentage which i have missed or any suggestions of how to deal with this if there is no option? Because at present we are largely overpaying what is the legal minimum due to this.

Many thanks,

Craig

 

  • Good morning,

    Does anyone from Sage have any help to offer with this as we are still struggling to deal with this issue and I cant seem to get any help from sage support on this matter?

    Is this a common issue or are we the only ones with this problem?

    Regards,
    Craig
  • Hi Craig, 

    Thanks for using our Product Support Community.

    Using Sage 50 Payroll you can calculate your holiday entitlement and pay. There are two ways that you can do this - using a holiday fund or a calculated holiday scheme.

    Holiday fund:

    A holiday fund allows you to contribute to a pot, funded either by the employee or the employer. If the holiday fund is set to be based on certain pay elements, you now need to check which payments are included. You can then decide whether or not overtime and commission payments should also be included.

    For information on setting up a holiday fund, you can refer to Ask Sage article 11427.

    Calculated holiday scheme:

    A calculated holiday scheme is used to calculate holiday entitlement based on the average hours worked in a certain number of weeks. Again, you may need to check what payments are included as part of this calculation.

    For information on setting up a calculated holiday scheme, you can refer to Ask Sage article 13734.

    If you’re still struggling to use either of these to calculate your holiday entitlement and pay our Support team will be able to take you through this in the software. You can contact them on 0845 111 5555.

    If this has answered your question, please click on the ‘This helped me’ link below.

  • Hi Paul,

    Thank you for replying, however you don't seem to have read my question.

    Kind regards,
    Craig
  • in reply to Craig Skinner

    We too are unable to find a way to produced the required average figures, disappointed that Sage cannot facilitate this, the above article does not help at all.