Average daily pay (‘ADP’) may only be used if:
Average daily pay is a daily average of the employee’s gross earnings over the past 52 weeks. This is worked out by:
Scenario - employee with irregular hours
Karim works four days per week and his hours vary between six and nine per day. He is off sick for a day (that he would usually work) and is entitled to sick leave. Karim’s varying work pattern means that his employer cannot work out his relevant daily pay. Therefore, average daily pay should be used (for his public holidays, sick and bereavement leave and alternative holidays entitlements).
The formula to calculate Karim’s average daily pay is:
Check out the latest important info & announcements for Reckon Accounts Hosted
Each Reckon software has its own dedicated category on the Community. Click below to browse all categories.