Why is public holiday set as payg exempt?

Hello user32996,

Thanks for posting in the Community! You'll have to check the pay category set up for the public holiday category type and make sure the PAYG exempt isn't ticked in the settings.

Here's how:

1. Click on the Employees tab.
2. Click on Payroll Settings.
3. Click on Pay categories.
4. Locate and select Public holiday category.
5. Under UNITS check if PAYG exempt is ticked or not.
6. If it is ticked that is the reason why the public holiday is exempted in the PAYG.
7. You can change the current set up by unticking the PAYG exempt.
8. Click on Save.

Once done, try to create a dummy pay run to check the calculation. You can also check this link to learn more on how to Create and manage Pay Categories.

You're welcome to post again here if you need anything else. I'll make sure to get back to you right away. Have a nice day!