**UK/NZ Payroll - PAYG Leave (Rolled-up Holiday) Maintenance

Some payees, such as those paid on a casual basis, may be eligible to be paid in lieu of annual holidays on a pay-as-you-go basis every time they work. Such payments are known as PAYG leave payments in New Zealand and rolled-up holiday payments in the United Kingdom.

If you have a requirement to make PAYG leave payments to payees, the payment parameters must be configured under Portal > Pay > Maintenance > PAYG Leave/Rolled-Up Holiday. Once configured, the payments are automatically calculated and paid to eligible payees at the PAYG Leave/Rolled-Up Holiday stage of the pay batch process.

To configure PAYG leave payments you must do the following:

• select the percentage hierarchy level at which the PAYG leave rate applies (for more information, see Percentage Hierarchy below).

• select a pay code against which the PAYG leave payment is to be made

• select the pay code group that defines the set of earnings based on which the PAYG leave payment is to be calculated

• select the payee conditional variable and corresponding value that defines which payees are eligible to receive PAYG leave payments (for more information, see Payee Conditional Variable below)

• define the rate at which the PAYG leave payment is to be made, as a percentage of eligible earnings.

PAYG leave payments are validity period driven and therefore it is possible to define different sets of PAYG leave payment settings for different periods. The system applies the PAYG leave payment according to the settings that are valid on the pay period end date of a pay batch. Once a set of settings have been used in a pay batch, that set of settings is locked down to retain a consistent payment history and cannot be edited. If the rate of the leave payment or any other attributes need to be edited, a new validity period can be created and the settings can be updated as required.

Percentage Hierarchy

The percentage hierarchy determines whether there is a single PAYG rate that is applies to all eligible payees or whether different rates can apply to individual payees. The following percentage hierarchy options are available:

• Country - indicates that the PAYG leave rate that is configured in PAYG Leave Maintenance applies to all eligible payees who belong to the payroll country.

• Payee - indicates that the PAYG leave rate that is configured in PAYG Leave Maintenance is the default rate that applies to eligible payees who belong to the payroll country who do not have a payee-specific rate defined on the Payee record. This option is available for Payroll UK only.

If the Payee option is applied, a payee-specific rate can be assigned to a payee under Payroll > Payee > Payee Entry > Payee Details > PAYG Leave/Rolled-up Holiday. If no rate is defined on the Payee record, the default rate that is defined under Payroll > Maintenance > PAYG Leave Maintenance is used instead.

Payee Conditional Variable

Payee conditional variables are used in the configuration of a PAYG leave payment to determine payees' eligibility to receive the payment at the PAYG Leave stage of a pay batch. For example, if you select a payee conditional variable called Employment Type and set its value to Casual, only those payees who have the Employment Type conditional variable on their Payee records set to a value of Casual will be eligible for the PAYG leave payment. 

Configuration Required Before Creating PAYG Leave Payments

The PAYG leave payment configuration uses a number of other maintenance items that must be configured beforehand. The maintenance items are:

• PAYG leave functionality must be enabled under Maintenance > Hierarchy > Country > Middle/Back Office Country Settings > PAYG Leave (for Payroll UK only)

• pay code against which the payment is made (Rates and Rules module)

• pay code groups (Pay module)

• payee conditional variables (Portal Maintenance module).