What holiday accrual methods are supported in Sage Payroll?

A holiday accrual method is a way of calculating how many holidays an employee is entitled to on a particular day during the holiday year.

Sage Payroll supports three accrual methods. You can make one of these the default accrual method for all the employees in the payroll. And then for a particular employee you can override the default accrual method with another accrual method.

Accrual method 1: Standard number of holidays per year

If the employee leaves the company during the year, their holiday entitlement on the leaving date is determined as follows:

Rate = (Total Annual Holiday Entitlement/52) X Number of Weeks Worked to Date

If the employee has not received their full entitlement by the leaving date, they are allocated the remainder at that stage on the same pro-rata basis.

The number of holidays due up to the current period is calculated according to the following formula:

((Holiday entitlement/52) X Number of Weeks worked to date) + Holidays Brought Forward + Holiday Adjustment (+/-) - Holidays Taken

Accrual method 2: Percentage of hours worked in the holiday year

The holiday entitlement is determined as follows:

• Holiday Hours Accrued This Period = (Hours Worked This Period +/- Hours Worked Adjustment) X 8%
• Holiday Hours Accrued to Date = Hours Worked to Date X 8%
• Holiday Days Accrued To Date = Holiday Hours Accrued to Date / Total Number of Hours in a Working Day
• Holidays Due = Holiday Days Accrued to Date + Holidays Brought Forward - Holidays Taken to Date

If an employee gets paid a salary, and this accrual method is used, the user must enter the hours worked this pay period in the time and pay's Hours Worked Adjustment field.

A standard amount can be entered in the Employee Details window. This will be brought into the Time and Pay screen if the value changes from period to period.

Accrual method 3: One third of a working week per month

This method requires that the employee works at least 117 hours in the month.

If this is the case, in the last pay period of the month, the Employee has worked at least 117 hours... field in the Time and Pay's Holidays/Absence tab is set to Yes.

In the case of monthly employees, this field is always set to Yes.

You must set it to No if the employee has not worked 117 hours in the calendar month.

The employee's holiday entitlement is determined as follows:

Holidays Due = Days Accrued + Holidays Brought Forward - Holidays Taken to Date +/- Holiday Adjustment