You can calculate an hourly rate or daily rate at which to assign to holiday pay. This rate is based on the average rate of pay accumulated over several historical periods.
When calculating the average rate of pay, Cintra iQ considers:
- The number of historical periods required. Twelve weeks is the default period on which to base your calculation, but it can be changed. When an individual has not been employed for the full period set, the calculation takes into account the number of existing periods of pay associated to the individual.
- Relevant pay for each historical period. For more information, see Determining Relevant Pay.
- Number of contractual hours/days within each historical period. For more information, see Setting Contractual Hours/Days.
To obtain the employee's holiday rate based on the average pay over twelve weeks, Cintra iQ divides the total relevant pay for the 12 weeks, by the total number of contractual hours for the 12 weeks.
Note:
Closed payroll periods. The average holiday rate calculated only takes into account closed payroll periods.
You must set up an addition heading under which Holiday Pay is to be paid at an Hourly rate or Daily rate. This addition heading is set within the Ad Hoc Payments category.
If there is no suitable Ad Hoc addition heading available, create one by performing the following:
To set up the holiday pay addition heading
- Navigate to the Addition Headings window.
Go to Cintra iQ: Payroll> Payroll Setup> Adjustments> Addition Headings...> Addition Headings window - Click the New button. The New Addition Heading window appears.
- Enter the Name of the new Addition Heading.
- Ensure the relevant Reporting Group is selected.
- Ensure the Category is Ad Hoc Payments.
- Select Units Times Rate as the Addition Type.
- Click the Next button. The Ad Hoc Payment... window appears.
- Select the desired options in the Main Settings tab.
- Select the Other tab.
- Select Daily or Hourly from the Calculate a ...rate from average pay history drop-down list.
- Continue to select the desired options in the Other tab.
- Click the Apply button. You are now ready to determine Relevant Pay.