In this instruction, we go through how to add a new holiday calculation method and change the divider of the holiday calculation method. In addition, we guide you in creating a new salary type to be used as a divider in a situation where time tracking is not in use. Finally, we review how to manually define the number of previous workdays and related considerations.
CONTENT
- Holiday calculation method
- Holiday calculation method divider
- Creating salary type
- Holiday calculation method divider
- Considerations
- Frequently asked questions
Holiday calculation method
Select Salaries > Settings > Holiday calculation settings > Holiday calculation methods > Add new holiday calculation method.
Help: Adding a new holiday calculation method
In the example below, the holiday calculation method "Average daily earnings from commission salary (ADE)" is copied.
Target the salary type as the salary type that is the basis for holiday pay and select Continue.
In the next step, enable the selection "Settable for employees".
Holiday calculation method divider
By default, the divider for the annual holiday day price in the holiday calculation method is "Workdays performed from the holiday accrual year to be processed". This means that the workdays performed are retrieved directly from time tracking.
Define the divider differently if the company does not use time tracking. Define the divider, for example, using a salary type that calculates weekdays in the pay period. If necessary, define the divider with a fixed number.
Creating salary type
Create a new salary type that acts as a divider.
Select Salaries > Payroll > Salary model management > Select from the salary type name > Formulas > Salary type formulas tab > Add new salary type and attach to salary model.
Create the salary type with the following settings:
- Salary type name: Pay period workdays
- Group: Salaries and allowances
- Payroll group: Not considered
- Source: User formula
- Calculation: Included in calculation by default
- Save
1. Start adding the salary type formula from the green plus.
2. Set the formula as: Pay period calendar information > Weekdays in the pay period > Save.
3. Go to the "Formatting" tab of the salary model to hide the salary type from the payslip view.
Holiday calculation method divider
Return to the holiday calculation method formula and change the divider.
Select Salaries > Settings > Holiday calculation settings > Holiday calculation methods > Select holiday calculation method.
1. Set the newly created salary type "Pay period workdays" as the divider.
2. Define that the value of the salary type is read from the holiday accrual year to be processed.
3. Define the divider also in the holiday pay accrual divider formula, which is found at the end of the holiday calculation method formula under "Accrual".
4. Define the divider in another way if time tracking is not used. By default, the accrual formula may include a salary type "Workdays performed in the pay period", which refers to time tracking.
5. Select from the available alternatives Pay period calendar information > Weekdays in the pay period.
Considerations
Keep the salary type in use in payroll so that the value is generated when you define the divider as a salary type. Before implementing the salary type, define the number of previous workdays manually, for example, through salary history information or on the payslip.
Select Salaries > Settings > Payroll settings > Salary history information.
If the number of workdays for an individual needs to be changed for a specific month, make the correction in payroll on the "Payroll accountant view" tab of the payslip.
It is not mandatory to define the calculation formula value for the salary type as weekdays in the pay period if you want to define the days entirely manually in payroll. The style is free as long as the end result is as desired and the formulas work!
Frequently asked questions
- How should I proceed if the company does not use time tracking?
Define the divider differently, for example with a fixed number or by creating a new salary type that calculates weekdays in the pay period. - Why must the new salary type be hidden from the payslip?
The salary type created as a divider is background information that is hidden on the "Formatting" tab of the salary model so that it does not appear unnecessarily on the employee's payslip. - How do I define the number of previous workdays before implementing the new salary type?
Define the number of previous workdays manually either through salary history information or directly on the payslip. - Where can I find the holiday pay accrual divider formula?
The holiday pay accrual divider formula is found at the end of the holiday calculation method formula under "Accrual".
Keywords
Holiday calculation method, holiday calculation method divider, salary type, pay period workdays, time tracking, payroll, salary model management, salary history information, holiday pay accrual.
Did you find it helpful? Yes No
Send feedback