Holiday pay seems high - NZ payroll

DAR01
2 Posts
User
User

2Posts

0Kudos

0Solutions

Holiday pay seems high - NZ payroll

Hi team,

 

Similar to this thread here, we have struck a problem whereby the holiday pay owing is higher than the 8% of gross wages for the period, paid after anniversary date.

 

Is the fix still relevant?

 

Also, if the holiday pay accrual is incorrect, however the annual leave has continued to increase each anniversary date am I right in saying the employee would not be entitled to the holiday pay showing as owing?

 

Thank you,

 

DAR

2 REPLIES 2
jenniek
Ultimate Partner
2,664 Posts
Ultimate Partner
New Zealand
Ultimate Partner

2,664Posts

1,147Kudos

333Solutions

Re: Holiday pay seems high - NZ payroll

Hi @DAR01 

I think would need further investigation of the annual leave entitlement, accrual and what has been taken. The main reasons for the Hol Pay 8% not being correct is either the opening balance when the system was started was incorrect, or the employee has been paid Hol pay using the HP code instead of the ANHL (annual leave) code.

Annual leave and Hol pay are two different things. Annual leave is reported in hours/days and Hol pay is reported at 8% of gross earnings for the current entitlement year only. Hol Pay turns into annual leave at the anniversary date. So your assumption that not all of the Hol Pay may be owing - but this needs investigation further to ensure that the leave entitlement each year has been correct and leave taken has been reducing that entitlement correctly.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
DAR01
2 Posts
User
User

2Posts

0Kudos

0Solutions

Re: Holiday pay seems high - NZ payroll

Thank you @jenniek ,

 

I agree, I think there isn't going to be an easy solution with this one apart from working it through pay by pay.

 

Will let you know how I get on.

 

Thanks,

 

DAR

Didn't find your answer here?

Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post