Summary

When an employee's employment ends, the amount of holiday compensation is calculated using a separate final account preview function. This function is performed in the payroll process during payslip editing. As a result, the unpaid holiday accrual is recorded to be paid on the payslip, and the employee's holiday pay reservation is reset.

CONTENT

Before saving the final account preview

Before saving the final account preview, ensure that the employee's holiday information is up to date. The information in holiday entitlement management and holiday pay debt must be current and any necessary changes acknowledged to ensure the final account is calculated correctly. For any potential accrual changes to work, the employee's holiday accruals must be saved monthly in holiday accruals and taken and paid holidays. There should be no unjustified negative amounts or holiday days in holiday pay debt.

If there is an error in the holiday price or the number of holiday days in the final account preview, proceed as follows:

  1. Close the preview with the "Cancel" button.
  2. Make the necessary changes in the holiday pay debt or holiday year prices views.
  3. Recheck the updated information by selecting "Final account preview".
  4. Press the "Save and add rows to the calculation" button only when the information is correct.

If the final account preview has already been saved and changes are made to holiday information afterward, the payslip must be deleted and recreated to update the information.

Final account preview

You can open the view or perform the function by selecting Payroll > Payroll > Payslips and periods.

  1. Form the payslip in the "Unprocessed payslips" phase.
  2. Open the payslip from the "Edit" link.
  3. Select the button "Final account preview" (1) from the "Payslip row details" tab.

Check the final account calculation from the opened view before saving. You can see the payable holiday pay and holiday bonus itemized by holiday credit year. Check the holiday price for different holiday credit years and the rows formed on the payslip.

Holiday calculation method formulas

Check the formula of the holiday calculation method from the holiday calculation settings:

Payroll > Settings > Holiday calculation settings > Holiday calculation methods > Choose holiday calculation method > Payable > Holiday compensation from holiday pay or Holiday compensation from holiday bonus

Holiday year prices

You can override the holiday price formulas manually in the following path:

Payroll > Holidays > Holiday management > Holiday year prices

Help: Holiday day prices by holiday year

Note that if you have set a holiday calculation method for the employee in the holiday year prices view, it prevents the normal formation of the holiday price.

Remove the holiday calculation method from the holiday year prices so that the price is calculated according to the chosen formula.

Holiday pay

Check the breakdown by holiday credit year, holiday prices, and the used holiday calculation method in the "Holiday pay" section. By default, the holiday price is calculated using the formula of the holiday calculation method on the payslip. 

The final account function also considers the information of the unfinished payslip, meaning the earnings to be paid affect the holiday price in the final account preview. Similarly, holiday days already marked as payable on the payslip are considered in the final account calculation, excluding unpaid holiday days. Therefore, it is important to calculate the final account only when all other earnings have been edited on the payslip first, so these are considered in the calculation of the holiday price for the final account.

Edit all other earnings on the payslip before calculating the final account, as they affect the holiday price. Consider the current calendar month's holiday accrual (2) and edit it if necessary.

Monitor the "Unpaid days" balance and check the number of unpaid days and possible rounding through additional information (3).

Rounding holiday days in final account

The final account function rounds only the unpaid accruals of the current holiday year to whole holiday days. If there are unrounded balances from previous years, round them manually from holiday reports or in the holiday pay debt view.

Final account and coefficient table rounding

The current holiday year can round the holiday accrual. If the holiday accrual for the current holiday year is, for example, 6.5 days, it is automatically rounded to 7 days, and in the Holiday KTA calculation, the value corresponding to 7 days is used from the coefficient table, and the rounded whole number, i.e., 7 days, is also used as the divisor.

If in the Holiday KTA calculation the holiday accrual from a past holiday year is 6.5 days, then in the calculation of the holiday price, the value corresponding to 7 days is used from the coefficient table, but the formula divisor uses 6.5 days.

This may cause that if new accruals for the current year have been paid and the final account also rectifies the portion of already paid holidays, the holiday price may slightly differ from, for example, the result of a calculator or Excel.

Holiday bonus

Select in the final account preview for each holiday year separately whether the holiday bonus will be paid (4).

Rows formed on payslip

Check the rows formed on the payslip and the holiday prices in the last section.

  1. Select "Save and add rows to payslip".
  2. Check the basis of the calculation and formulas from the "Payroll accountant view" tab by hovering the mouse over the salary type name.

Rectification of monthly salary

  1. Calculate the final account first, forming the holiday compensation and possible rectification of monthly salary (1) automatically.
  2. If there is a need to edit the monthly salary, change the amount from the "pencil/notepad" icon (2). This does not affect the already calculated holiday compensation rows.

Payslip processing history

You can check the processing history (6) to see who saved the final account and when.

Payslip pdf printout

Note that calculating the final account resets the "Available holiday days" and "New holiday days accrual" columns from the pdf printout.

Payroll accounting voucher

From the "Payroll accountant view" tab on the payslip, you can check the accountings of salary types. The accountings for holiday compensations come from the "Holiday calculation method salary types" page under:

Payroll > Payroll > Salary model management > Holiday calculation method salary types

From the payroll accounting voucher, the accounting holiday pay debt is rectified for the paid holiday pays, which releases the payroll voucher accounting holiday pay accruals from account 2962 Holiday pay expenses (accrued liabilities).

Help: Handling holiday pay debt in accounting

Final account and holiday accruals

On the Holiday accruals page, the month's holiday accruals are calculated, which also show the holiday compensations paid on the final account. By hovering the mouse pointer over the holiday accrual, a window opens explaining the final account calculation. The final account function also calculates the holiday accruals for the current calendar month.

Rectification of final account

The program compares the holiday compensations paid on the payslip to the accrued holiday pays, i.e., the values in the "Unpaid holiday pay" and "Unpaid holiday bonus" columns. If more or less holiday has been paid than the employee has unpaid, a rectification of holiday pay is formed for the accrual change to zero the employee's holiday pay debt report.

For example, if fewer holiday accruals have been made than holiday compensations are paid in the final account, the accrual change forms additional accrued holiday pay debt. This is because the holiday pays and bonuses paid on the payslip are recorded in the balance sheet from the holiday pay debt account. If less holiday pay debt has been recorded in the accruals, the accounting holiday pay debt in the balance sheet would go negative for the employee who has been paid the final account if the missing expenses from the accounting are not accrued with the accrual change.

Rectification of holiday bonuses

If holiday bonuses are not selected to be paid to the employee in the final account, but they have been accrued in the balance sheet, these must also be rectified from the accounting and holiday pay debt report. When no payable holiday compensation from holiday bonus salary type row is formed on the payslip, which would reduce the employee's holiday pay debt in the balance sheet, the accrual change releases accrued holiday bonus accruals that are never paid to the employee. At the same time, the calculated holiday pay in the profit and loss statement is reduced if holiday bonuses do not need to be paid from the current holiday year according to the collective agreement.

Final account and holiday pay debt

Note that balances are zeroed from holiday reports only after paying the payslip and calculating the month's new holiday accruals. 

For the month being processed, an "info ball" is visible in the holiday accruals (1) when the final account calculation has been used. The information shows the original holiday pay accrual and the accrual change recorded with the final account, depending on whether more or less holiday pay debt has been recorded.
In the image below, for example, holiday compensation totaling 7,572.55 euros (2) has been paid to the employee and no holiday bonuses (3).

The employee's "Unpaid holiday pay" has been a total of 6,190.19 euros (4) by the end of May. For this reason, the accrual change records additional accrued holiday pay of +937.56 euros (7,572.55 - 6,190.19 - 444.80), so that the "Unpaid holiday pay" is zeroed cumulatively from the report.

The unpaid holiday bonus has been 3,094.82 euros (5) by the end of May, and no holiday bonuses were paid on the payslip with the final account, which were accrued, this is rectified by recording -3,317.22 euros (3,094.82 + 222.40), so that the accrued holiday bonuses are zeroed from the report.


Holiday pay accrual voucher

  1. Select "Calculate holiday accruals" on the Holiday accruals page.
  2. Select "Preview and form voucher".
  3. Check the accountings from the "Preview" tab.

More detailed information on handling holiday pay debt in accounting can be found in this guide: Handling holiday pay debt in accounting

The recorded holiday pay debt is calculated as accrued holiday pay + accrued holiday bonus.

The employer's contribution for the holiday pay accrual is calculated according to the insurance percentage defined in the settlement point settings. NOTE! The amounts are affected by the "Reduce employee's share of employer's contribution for holiday pay accruals" selected in the payroll settings.

Employer's contribution is also calculated for holiday compensations paid in the final account in the "Release of employer's contribution for paid holidays" section.

Construction industry holiday calculation and manual salary types

If employees use the construction industry holiday calculation method, where salary types "Holiday percentage 14%" and "Holiday percentage 4.5%" are used for paying holiday pay with the "Salary types with manual calculation" selection, the holiday compensation must be added manually or the holiday year prices view can be used to set the holiday price. One option is also to edit the salary type settings to enable the "Included in calculation by default" selection, so the holiday pay is automatically formed on the payslip.

Payroll > Settings > Holiday calculation settings > Holiday calculation methods > Construction industry holiday calculation > Holiday day price > Holiday bonus day price > Holiday percentage 14% and Holiday percentage 4.5%.

Manage salary types: Payroll > Payroll > Salary model management > Company-specific salary types > Holidays and absences

Municipal holiday calculation and holiday bonus

If paying the final account and annual holidays with the municipal holiday calculation method for holidays from the current new holiday credit year, the payable holiday bonus compensation must be calculated and added to the payslip manually. The final account does not know how to offer holiday bonus for payment with the municipal holiday calculation method, as there are no unpaid holiday bonus days, and the final account logic is based on unpaid holiday days. The municipal holiday bonus is a manual salary type, which is always included in the August payslip. The municipal holiday calculation holiday bonus days disappear from holiday reports when the municipal holiday calculation method accrues holiday accrual euros. Adding only holiday days does not yet hide holiday bonus days from view.

Frequently asked questions

How to proceed with final account calculation if current year holiday accruals have already been paid?

When the last payslip includes all paid earnings, the final account can then be calculated. The final account brings the remaining unpaid holiday days for payment, but the holiday price would not be correct. For example, if the total accruals are 10 days and 6 days have already been paid, the final account only brings 4 days of holiday for payment. Once the final account is added to the payslip, you can change those 4 days to 10 days manually, so all holiday accruals are paid at the correct price on the calculation. After this, manually add negative holiday pay to the payslip for the amount of euros already paid. Negative holiday days should not be edited on the salary type, so that no changes are made to the holiday pay debt already zeroed by the final account. The result is that all 10 days are paid at the correct price, and the euros already paid are deducted.

Example

  • 05/2023 6 holiday days are paid at a price of 50 euros
  • 10/2023 Final account is paid, bringing unpaid holiday days 4 days at a price of 55 euros
  • Manually change on the payslip 4 days on the payable holiday day salary type row to 10 days -> 550 euros of holiday pay is paid
  • Add a new row to the payslip for already paid holiday pay as negative 6 days at a price of -50 euros
  • Thus, the result is that the employee receives all 10 days of holiday at a price of 55 euros, instead of receiving 6 days at a price of 50 euros and only 4 days at a price of 55 euros.

Keywords: final account, holiday compensation, holiday credit year, holiday pay, holiday bonus, accrual change, holiday pay debt, payroll

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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