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 How Do I Determine Relevant Pay? - 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. Once you have set up the holiday rate requirements, you are now ready to calculate the employee's holiday pay either by calculating the payroll via the Tool bar Calculate icon or by the employee's payslip.
To calculate the holiday pay rate
- Navigate to the employee's Payslip & Period Summary window.
Go to Cintra iQ: Employment record> Forms> Payslip - Navigate to the Gross to Net Summary tab.
- Click the Calculate button. A message appears stating that the employee's payroll information has been calculated. And the payment now appears on the payslip.
- Expand the Holiday Rate to view the details, if necessary.
- Click the OK button to close or click the Print button to print the payslip.