how to process holiday loading

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I have no idea where to find holiday loading or how to process it
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Lee Wingate

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Posted 3 years ago

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Kevin Russell, Accredited Partner

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Did you read the help files? This is pretty simple. You just need to add the holiday pay scale to the employee card. You also need to add the addition Holiday loading. When you process the holiday pay use the holiday pay rate. The holiday loading will be added automatically
(Edited)
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Shirley Ingle, Accredited Partner

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Hi Lee  I will expand a little on what Kevin has told you.

Firstly you need to have set up in Payroll Items a payroll item for Holiday Hourly and another for Holiday Leave Loading.

When you process the pay, Click on Holiday Hourly item code and enter the number of hours you are wanting to pay the employee. Then below where you see Other Payroll Items, Enter Holiday Loading. The program will look at the Holiday Hourly amount and calculate 17.5% on that amount. There is no super on this. It is taxed fully. You don't use Holiday Hourly item for Public Holidays nor is there Holiday Loading on Public Holidays.

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Kevin Russell, Accredited Partner

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Shirley is there a support note for this?
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Shirley Ingle, Accredited Partner

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Hi Kevin  Not sure if there is. Have used payroll for many moons so have never needed any notes. Carolyn or Kelly may have something.
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Kevin Russell, Accredited Partner

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Shirley i was referring to the knowledgebase. Thank you
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Sian Ward

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Hi,
How do you set up the holiday loading payroll item to only calculate off the holiday pay? When i tried to set it up it calculated on the whole pay rather than just the annual leave?
Thanks
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Shirley Ingle, Accredited Partner

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Hi Sian

Check the Payroll item for Holiday Loading.

It should be set as an Addition. Item is Holiday Loading, Expense account Wages/Salary or whatever you use.

Tax tracking type Gross Payments

Taxes PAYG

Calculate based on Quantity - Dot on Neither

Default rate and limit  17.50% (or whatever you are required to pay)

Inclusion Super - not ticked.

Then when you pay Holiday Pay, choose the Item Holiday hourly. Then to enter the Holiday Loading, this is entered in the area Other payroll items (under where you see super).

The Loading will only calculate on the amount for Holiday hourly. All the Gross Wages is taxed fully.

Hope this is clear enough for you to follow.



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Matt Hudson

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Hi Shirley, how does this work if an employee takes 10 hrs leave and the rest as normal pay as your description above puts 17.5% on all the hrs?
Hi Matt

The "Holiday Loading" Payroll Item is pre-created by Reckon & configured to link specifically with "Holiday Pay"-only type Payroll Items so it only calculates on these amounts & not ordinary/standard pay amounts. 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com



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Jodie Kellett-Wurf

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Hi Shirley,
I have mine set up exactly as you described but it always adds on leave loading to all hours paid - not just the holiday hours. I have to remember to adjust it manually every time. What am I missing?
Jodie

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Kevin Russell, Accredited Partner

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Are you sure that overtime isn't being included in ordinary hours? What happens if you use the test company file?