How do I calculate holiday pay rates for employees?

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:

1. 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. 
2. Relevant pay for each historical period. For more information, see How Do I Determine Relevant Pay?
3. Number of contractual hours/days within each historical period. For more information, see How Do I Set 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.

 

Now that you have created additions headings and assigned hours/days to the employee(s), you are now ready to calculate the holiday rate for each employee.

 

To view the holiday rate calculation

1. Navigate to the Holiday Pay Rate window.
   Search path: Payroll> Payroll Tools> Payroll Input> Hourly/Daily Holiday Rate> Holiday Pay Rate window
2. From the Addition Heading drop down list, select the desired addition heading. The Payroll drop down list becomes active.
3. From the Payroll drop down list, select the desired payroll. The Specific Employees drop down list becomes active.
   

     Note:

   Steps 1 and 2 are set up in Addition Headings, Holiday Pay Settings and Employer Setup.

4. From the Specific Employees drop down list, select All or individual employees.
5. Click the Calculate Rates button. The employee(s) details appear in the pane, with the calculated rate displayed.
   

     Note:

   When you select All from the Specific Employees drop down list, the only employees that are displayed on the list are those with holiday hours without a rate.

     Note:

   The Holiday Rate calculation functionality extends to those employees who have holiday hours entered, but have no rates present for these hours. Once a rate is applied to the entered hours, the employee disappears from the Specific Employees drop down list.

     Note:

   The calculated rate can be overridden by adding an entry in the New Rate column. Click in the field next to the desired calculated rate and enter the new value.

6. View the break down of the employee(s) rates, if desired. For more information, see View the breakdown of employee rates.
7. Click the Apply button. A Holiday Rate message appears stating We will now apply the holiday rates to all employees on the screen. Do you want to proceed?
8. Click the Yes button. The holiday rate is applied. You are now ready to calculate and print the payslip if desired.
   

     Note:

   The employee is removed from the Specific Employees drop down list as their holiday rate is applied for that period.

To view the breakdown of the employee's rates

1. Select the employee.
2. Click the Expand button. The details are broken down into actual pay and contracted hours per period.
   

     Note:

   This screen is read only. To make modifications you must close the Holiday Pay Rate window before returning to the source(s) of the calculation and make the change(s) there. The Included in calc column displays which periods are selected to be included in the calculation.

3. Click the Collapse button. Once you have reviewed the rates and made the desired changes, you are ready to apply the holiday rate.

     Note:

   If you wish to delete or remove the rates, return to the Payroll Period Input and Corrections window Payments and Rates tab Right-click entry Open Edit Payment Record window and remove the rate. The employee will be re-instated onto the Holiday Pay Rates window Specific Employees drop down list.