Rolled up holiday pay

It's good to have you back in the QuickBooks Community forum, ariel2. I understand you're looking to add the rolled-up holiday pay to your employees' payslips, and I'm here to help you accomplish that quickly and easily.

Currently, the option to track holiday pay amounts isn't available. However, you can add rolled-up holiday pay as a pay type. This process allows you to include these specific calculations on your employees' payslips when processing payroll.

Here's how:

1. Navigate to the Payroll menu.
2. On the Employees tab, select the employee.
3. Open the Pay Types tile by clicking Start or Edit
4. Choose Holiday if you have this option. If not, click Other earnings and enter its name accordingly.
5. Once done, hit Save. 

After you add the pay type to the employee's record, you can establish a default amount for that worker. This pay type will also be included in the company settings, enabling you to apply it to other employees as well. For more info, check out this article: Managing holiday, bonus, and other pay types in QuickBooks Online Core Payroll.

Additionally, I've included a comprehensive guide on organising your payroll and ensuring everything is aligned with the tax year: Year-end guide. This resource will provide the necessary steps to streamline your processes and maintain compliance.

Should you have any questions or need guidance on processing your employee's tax obligations, share them in the comments section below. Together, we can ensure that your payroll system operates smoothly and your employees receive clear and accurate payslips.   

Hi

I couldn't find any answers to setting up rolled-up holiday pay in the UK knowledge base but QBO support provided a link to this article:
https://support.yourpayroll.com.au/hc/en-gb/articles/100[removed]7-Rolled-up-holiday-pay

I've set up rolled-up holiday pay as advised but the calculation isn't working for part hours. According to the article, the calculation is:

A = Total £ value of all pay categories you have selected to be included as part of rolled-up holiday pay.

B = Percentage value saved against the employee (default 12.07%).

A/100 = Y

Y x B = V (Apply rounding to nearest pence)

My calculation for 0.75 hours worked at £13 per hour is:

A = total £ value = 0.75 * £13 = £9.75

B = Percentage value saved against the employee = 12.07

A/100 = Y = £0.0975

Y x B = £1.176825, rounded = £1.18

Quickbooks pay run calculates this at £1.21

I've raised a support case and the engineering department has advised "the feature is working as designed". Has it been designed to work with a different calculation? If so, what is the calculation?

Can anyone confirm the correct calculation / amount?

Thank you

Thanks for walking us through your setup and calculations, @dan_b. I appreciate you joining the thread. I understand you've followed all the correct procedures and have noticed discrepancies between the calculations on your payslips and those based on the article provided when you contacted our live support. It's crucial to have accurate pay. I want to ensure I point you in the right direction.

Your manual calculation based on the details stated in the article is correct since it's what HMRC recommends to avoid overpaying or underpaying your staff members. To recap, calculating the rolled-up holiday pay involves dividing the amount they’ve been paid by 100 and multiplying by 12.07.

In QuickBooks Online (QBO) Advanced Payroll, the issue seems to be with the rounding-up calculation before applying the 12.07% rolled up holiday pay.

I see that you've contacted our Live Support Team. However, I recommend reaching out to them again for further clarification on how the software calculates rolled-up holiday pay. They will be able to guide you through the necessary steps to resolve any issues. Here’s how you can contact them:

1. Go to Help (?) in your QBO account.
2. Select the Search tab, followed by, Contact Us.
3. Enter your concern.
4. Hit Continue.
5. Choose Chat with us.
   

    

For future reference, I'm adding this guide to get the most out of QBO Advanced Payroll: Advanced Payroll hub | QuickBooks Online. 

I appreciate your patience in finding a solution to get this resolved. I hope the details I've shared help resolve the issue about rolled-up pay calculations in your QBO Advanced Payroll. If there are details you'd like to add or clarify, feel free to click on the Reply button. We're committed to offering ongoing support. Take care!