How is holiday pay displayed on payslips within businesses?
Due to the amendments to the calculation of holiday pay, it felt appropriate to explore how holiday pay is displayed on employee payslips.
The responses drawn from this question show the majority of payroll departments do not split holiday pay out, and it is simply included within the salary element on employee payslips. This suggests, in line with previous responses, that many companies do not pay staff with either variable pay or hours and that they instead receive a fixed figure each period.
Where businesses opt to display holiday pay separately, 30% include it as an hourly rate, while 15% show it as a daily rate.
Where respondents originate from a bureau background, they confirm how holiday pay is calculated and subsequently, itemised, on payslips will be wholly dependent on the client that they are processing payroll for.
There are also a significant number of comments suggesting that payroll professionals encounter a mix of all three methods of displaying holiday pay, based on the nature of the employment of individuals, as businesses often employ a wide variety of staff, who work and receive pay in a variety of different ways. Awareness of changes to mandatory payslip information From April 2019, additional information had to be displayed on payslips provided to workers whose pay would vary based on the basis of the number of hours they work.
C I PP POL I CY AND RESEARCH TEAM PAYSL I P STAT I ST ICS COMPARI SON 2008 -2021
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