Description

The UK determines the holiday pay rate based on the average of 52 weeks of earnings and hours. Customers require that the cost rate that is determined in the pay batch uses the average of 52 weeks earnings and hours. The current functionality only determined the cost rate based on the pay batch gross pay value / the pay batch quantity and thus the hourly rate would be different to the true cost rate if all holiday pay was to be paid in that period.

Once the configuration of the leave type has been applied (The Cost Rate Type has been set), the system will use the Average Rate to determine the hourly cost rate.

If the cost rate field is using the Average Rate with the Start Day of Week Before First Day of Leave, this will include the current period hours worked as part of the 52 weeks that are included.

If the cost rate field is using the Average Rate with Start Day of Prior Week End, this will start the average from the week before the current period: it will not include the current period hours.

If you have prior worked weeks included in the current pay batch, the cost rate will be the same for those weeks as the current processing week. This is because if you are paying out holiday, the holiday pay rate would be at the time the holiday is processed.

Any reports that contain the accrual cost will automatically be updated as there is no change to the way the cost is determined. The change is the determination of the hourly rate.

Benefits

Determines an accurate cost rate for UK leave liability reporting requirements.

Configuration

See Leave Type - Cost Accrual Rate Type.