CONTENT
- Initial situation
- Recording holiday accruals
- Recording holidays in working hours
- Creating payslip
- Rectification of holidays
- Payslip information and verification
- Taken and paid holidays on payslip
- Holiday management and accruals
Initial situation
The employee with a monthly salary started their employment on 1.4.2021. They have accrued holidays from 1.4.2021 - 31.3.2022 totaling 30 holidays, which have not been taken. The employee has been set with holiday calculation settings from Holiday rights management.
- Holiday calculation method: Monthly salary holiday calculation (Monthly salary employees)
- Holiday accrual rule: Accrual according to the Annual Holidays Act
- Holidays accrued per month: 2.5 days/month
- Salary basis: Monthly salary 4000 €
- Employee's default cost object: Lappeenranta (100%)
(Image 1 Holiday rights management)
This example demonstrates the use of new holiday calculation, how holidays are recorded in Netvisor's working hours, and how holiday calculation behaves in the payroll process and holiday pay accruals.
Recording holiday accruals
On the Holiday management Holiday accruals view, monthly accruals of holidays and euros for the holiday year are recorded. The view can generate a holiday pay accrual voucher, which transfers the accrued holiday pay to bookkeeping. The employee has 30 unpaid holidays, holiday pay, and holiday bonus. By clicking the desired month from the employee's row, a view opens as shown in the image below, where the month's accrual euros and holidays are recorded. The Holiday calculation method set for the employee is bolded. The view can be limited to the desired time period, for example, the entire (holiday) year and one employee at a time to facilitate accrual recording. Help guide: Holiday accruals
(Image 2 Holiday accruals)
Information added to holiday accruals is presented in Holiday pay debt. Help guide: Holiday pay debt
(Image 3 Holiday pay debt)
Recording holidays in working hours
Netvisor's record types may not have a ready-made record type for annual holidays. If necessary, a new record type can be created from the record type settings.
Pay > Settings > Payroll settings > Record types > Add new record type
The annual holiday record type might look like this:
The record type is used only for recording holidays in working hours. The record type does not have a salary model-specific formula, as the holiday price is not calculated with the record type formula, but with the Holiday calculation method formula.
The employee is on holiday in April from 4.4.2022 - 9.4.2022, totaling 6 days. From the working hours recording, select the "Add Holiday/absence" tool. In the working hours recording, "Recordable holidays" are shown totaling 30 days, which come from Holiday management information.
When open hours are acknowledged and approved, the holidays move to payment in the payroll process. There are still 24 untaken holidays left.
Creating payslip
The payroll accountant checks the employee's salary basis before creating the payslip, which shows the recorded and approved annual holidays in working hours in the "Taken holidays", "Payable holidays", and "Payable holiday bonus days" columns.
Taken holidays
- Taken holidays bring (by default) the approved holidays of the pay period
- If the information is already in working hours recordings, it cannot be edited directly in the column, but holidays must be corrected from working hours recordings to ensure consistency between the payslip and working hours view.
- If there is nothing to fetch from working hours recordings (no holiday recordings or the Travel service is not in use), the taken days can be manually entered into the field
Payable holidays
- Payable holidays are offered as the difference between taken and paid holidays in the payslip holiday information. The value formed in the column may therefore differ from the "Taken holidays" column value.
Payable holiday bonus days
- Payable holiday bonus days are offered as the difference between taken and paid holidays in the payslip holiday information. The value formed in the column may therefore differ from previous column values.
- Payable holiday bonus days can be defined separately according to the company's practices.
Rectification of holidays
If too many holidays have been marked as taken or/and paid in previous pay periods for the employee, "Taken holidays", "Payable holidays", and "Payable holiday bonus days" can be rectified in the Holiday management Taken and paid view. Help guide: Taken and paid
Payslip information and verification
The payslip is created, and from the payslip editing, you can see the payable holidays. The holiday price is calculated using the Holiday calculation method's holiday price formula.
In the payroll process, in the payslip editing "Payslip row information" tab, salary type information is shown, which also appears on the employee's final pdf printout. The payroll accountant can check the "Holiday pay accrual" and "Holiday bonus accrual" euros and calculation formulas from the "Payroll accountant view" tab.
Salary types affecting holiday pay calculation:
- Monthly salary price per day
- Salary types considered in earnings
- Holiday price
- Holiday pay (Monthly salary employees)
- Holiday bonus day price
- Holiday bonus (Monthly salary employees)
Salary types affecting holiday pay accrual:
- Salary types considered in accrual earnings
- Accrual day price
- Holiday pay accrual
- Holiday bonus accrual
The calculation formula for all salary types can be checked by hovering the mouse pointer over the salary type name. The same calculation formulas can be found and checked from Holiday calculation methods:
Pay > Settings > Holiday calculation settings > Holiday calculation methods > Monthly salary holiday calculation
On the Holiday management Holiday accruals tab, a holiday pay accrual for May is formed with Holiday pay accrual 400 euros and Holiday bonus accrual 200 euros and new holiday accruals of 2.5 days, which are calculated only after the payslip payment. Help guide: Holiday accruals
In the payslip editing "Payslip additional information" tab, the holiday information added in the "Check selected salary basis" phase is shown as "Recorded taken holidays on payslip", "Paid holidays on payslip", and "Payable holiday bonus days".
From the payslip "Allocation curve" tab, you can check the employee's cost center and allocation curve. The employee has been saved with "Cost center 1" as the default cost object in the basic information, where salary costs are automatically allocated 100%. The cost center for the holiday pay accrual voucher is formed in the same way for the same cost object.
From the payslip "Working hours, travel, and absences" tab, you can check the annual holidays recorded in working hours. 1 holiday means 7.5h in this view.
From the payslip pdf printout, you can see the payable holiday pay and holiday bonuses and, if necessary, the rectification of monthly salary, if it is in use with the salary model. The formatting of the payslip pdf printout and the order of salary types in the payslip pdf printout can be edited from the salary model formatting.
Pay > Payroll > Salary model management > Monthly salary employees (basic model) > Formatting
In the payslip pdf printout, "Available holidays" and "New holiday accrual" are presented, which come to the payslip from Holiday management.
The payslip holidays can be checked from different views in Holiday management, cumulative information is seen from the Holiday pay debt tab. Pay > Holidays > Holiday management > Holiday pay debt
Help guide: New holiday calculation views
Taken and paid holidays on payslip
When the employee's payslip is paid or marked as paid, the taken holidays and the values of paid holiday pay and holiday bonus are formed on the Taken and Paid tab according to the payslip information.
Pay > Holidays > Holiday management > Taken and paid
Help guide: Taken and paid
Holiday management and accruals
When the pay is paid or marked as paid, the payslip is formed as the basis for calculation on the Holiday accruals tab according to the last day of the payslip pay period.
Pay > Holidays > Holiday management > Holiday accruals > May
Holiday pay accrual is formed according to the pay period dates by selecting "Calculate holiday accruals".
Read more in the help guide: Handling holiday pay debt in bookkeeping
Holiday pay accrual is always formed according to earnings, meaning the accrual is formed according to the last day of the pay period, and this is also considered in the allocation of costs to cost objects.
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