We first examine the legislative requirements of the Holidays Act 2003.

We then show how Ace Payroll handles those requirements.

An employee's usual pay at the time of taking the holiday, or

The employee's average earnings over the previous four weeks.

This is the calculation required by Section 21(2)(b)(ii), and is the employee's average weekly earnings for the 12 months immediately before the end of the last pay period before the annual holiday.

Pressing the report icon on this line produces a detailed report of the calculation.

From the calculation report, there is another report itemising the gross earnings.

From the gross earnings report, you can view a past period payslip for every item on the report of gross earnings.

This is the calculation required by Section 8(2) , and represents average earnings over the last four weeks.

As above, the report icon allows you to drill down through the various detail.

If you have entered a standard pay for the employee, then it is shown here.

Again, the calculation is fully itemised by clicking the report icon.

To process a holiday pay, first select the days taken.

This is documented in Using The Leave Calendar.

Ace Payroll automatically selects the correct rate by itself.

Click GO to accept the suggested daily rate.

You can overwrite the suggested rate with a value of your choice.