Annual Holidays & Holiday Pay

Question

Hey all,&nbsp;I have recently taken over payroll from the previous office manager, who has now retired.&nbsp;I asked a few questions about the payroll setup, but was told this is just how it's supposed to be.&nbsp;Almost all of our employees are salary workers, and get 4 weeks annual leave a year.&nbsp;Every single person has both 8% Holiday Pay as well as the 4 weeks Annual Holidays set up.&nbsp;Is this right?&nbsp;Seems like it is trying to do both. I have tried researching, but can't seem to find a clear answer, and I don't know anyone else running MYOB payroll to ask them if it's correct.&nbsp;Thanks for any help you can offer.&nbsp;

genreve_s · Answer

Hi louisew1,&nbsp;
&nbsp;
That certainly sounds confusing. But for NZ permanent salaried staff, it’s just right to have 4 weeks of Annual holidays and an 8% Holiday pay percentage in setup. The 8% is just an accrual that converts to weeks at the employee’s anniversary and shouldn’t be paid each pay; paying 8% each pay (pay‑as‑you‑go) is only for casuals or genuine fixed‑term employees under 12 months, so for permanent staff, ensure any “include holiday pay in each pay” option is off.
&nbsp;
Regards,&nbsp;
Genreve

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Annual Holidays & Holiday Pay

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