CONTENT

Old holiday calculation salary types in the "Holidays and absences" group of the salary model should not be used for paying holiday pays. These include "Holiday pay" and "Holiday bonus". The settings for these old salary types are changed so that they can no longer be selected for the payslip or generate accounting allocations.

This help relates to phase 2 "Updating salary models" of the implementation of the new holiday calculation. 

Editing holiday calculation salary types

The implementation of the new holiday calculation has been (28.3.2018) simplified so that editing salary types is sufficient by removing the selection from the additional settings of the old holiday calculation salary types at "Included in calculation by default" (see image below, point 1). This way, the formulas of the salary types do not need to be separately removed from the salary model.

Each salary model has slightly different salary types related to holiday pays and allocations. Below are example images of editable salary types from our salary model bank:

Monthly salary (basic model):

Hourly pay employees (basic model):

Hourly pay employees, technology industry:

Restaurant industry (basic model):

  

New salary types for paying holiday pay and holiday bonus according to the new holiday calculation method are automatically created when the holiday calculation method is added. These are automatically linked to the formula of the Cash salary of the salary models used by the company when the new holiday calculation is first implemented.

Information on the automatically created payable holiday pay on the salary type:

 

Pay - editing salary type 

For the monthly salary model, change the old salary type for paying holiday pay from the "Pay" salary type to the new salary type coming from the holiday calculation method. 

Old formula: 

New formula: 

 

Rectification of monthly salary - editing salary type

If the salary model you are using has a salary type for rectifying the monthly salary when paying holiday pay, check that its calculation formula is correct. Salary models have a default "Rectification of monthly salary" salary type, whose calculation formula is by default -1. This formula is intended to be multiplied with the holiday pay salary type used in the salary model. This way, the salary type rectifies the monthly salary of the employee on the payslip to be reduced by the amount of the payable holiday pay. 

Also check that the other settings of the salary type meet the company's needs, such as Account allocation debit/credit account and Income type allocation:

 

Updating salary model formatting 

Once the revised holiday calculation has been implemented, it is advisable to update the formatting of the salary models so that the payslip is pleasant for the employee to read. With the reform, salary types related to holiday calculation are added to the salary models, which are by default visible on the payslip. 

The formatting of salary models is set from the view:

Pay > Payroll > Salary model management > Edit-icon on the salary model being processed > Formatting-tab

Salary types are added to salary models as needed, i.e., only to those salary models to which the employee belongs and which therefore require salary types related to holidays. Therefore, this step is advisable to be done at the end of the implementation.  


 

 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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