Let me share some insights for you to deduct the correct tax- NI and pension contribution when calculating holiday pay, @Dave Berry.
Normally, the system calculates contributions and deductions depending on how you set them up in the system. When an employee gets money from holiday pay, you still have to deduct tax on it and usually National Insurance and pension contribution too.
I'd also suggest reaching out to an accountant so they can help you verify your setup according to your payroll preferences. Feel free to use these articles that will help you identify pay types:
You'll want to advance the pay period for that specific employee, you can reference this article: Adjust pay period dates within a pay run in QuickBooks Online Advanced Payroll.
Additionally, you can contact our Customer Support team to see if they have another way to review this calculation.
Here's how to reach our supports:
- Sign in to your QuickBooks Online company.
- Select Help (?).
- In QB Assistant, type the topic you need help with. You can also enter questions.
- Select Contact Us to connect with a live support agent.
- Choose to Start a chat or Call us.
Feel free to swing by and leave a comment if you have other concerns with running payroll. I'm always here to help. Have a safe day ahead!
