• # 96757
• Thu 02 Jan 2014 07:52 PM

Hi all, I hope you can help me.

I have a new client who want to change their payroll software provider from Sage to one that can handle the intricacies of their business. 

They are a manufacturing company with 30 employees, only a few of whom are salaried. The rest are hourly paid and the hours they work varies greatly according to demand. So sometimes the employee will work 18 hours per week and sometimes 30 hours per week. 

They currently use Sage Payroll but not only is it expensive, it also doesn't do what they need it to! 

The problem is the calculation of holiday pay. At the moment they have a complex Excel spreadsheet that takes the last 12-13 weeks hours and works out an average in order to calculate the holiday pay. I sat watching this done today and it took literally the whole day to process what should be a relatively simple payroll.

I am sure that there must be a software provider that will do that. 

They are not considering changing until the new tax year but would really like something in place soon to run in parallel with their existing method for a couple of months before "going live". Obviously they will need to continue the manual calculation until they have the required number of weeks data on a new system (unless there is a miraculous system into which you can feed the historic data!)

Does anyone know of a system that does this?

I only have experience of 12Pay and Sage and neither, to the best of my knowledge, will handle this scenario

All advice gratefully received.

Clare

• Bruton Young Bookkeeping
  
  

• 
  Quote
  

• # 96762
• Thu 02 Jan 2014 11:27 PM

Hi Clare,

Sage 50 Payroll does the calculation that they require for the last 12/13 weeks.

I know because I use it for a supermarket.

It has to be set up in the holiday module and can be applied to the departments you want, so monthly employees if they are on a fixed holiday will be assigned to one holiday type and the weekly staff assigned to another holiday type.

I don't know of any other payroll software that does this but I daresay there are some out there.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

• 
  Quote
  

• # 96776
• Fri 03 Jan 2014 08:45 PM

Hi

I hope I'm not breaking any copyright laws by posting this from the Moneysoft help file - but it does seem very 'versatile' - I wonder if this would help you. It's a very poplular and easy to use payroll package that seems to just tick all the boxes.......(and in case you think I'm trying to sell it....I don't work for them!!)

Here's the list of features http://www.moneysoft.co.uk/payroll-software/payroll-manager-features.htm

and here's the help file info about holiday pay

• Salaried employees normally do not get separate holiday pay – it is deemed to be included in their normal pay.
• If Holiday Pay is paid separately, the amounts paid are generally regulated by a Holiday Fund, which can be reached by clicking on the Holiday Pay tab at the top of the Pay Detailsscreen.
• Additions to the fund (earned holiday pay) are entered in the second column.
• If the addition is a percentage of normal pay, enter the percentage in the first column. The actual addition will be that percentage of the basic plus hourly pay for the period (over-riding anything that may previously have been entered in the Added to fundcolumn).
• If the addition is just an amount in pounds, leave the percentage column blank or set to zero, and enter the amount in the second column.
• When Holiday Pay is actually paid to the employee, enter the amount in the third column.
• The Holiday Pay fund balance is shown in the fourth column. If you click on the button you can set the Holiday Fund starting balance.

 Employer-funded Holiday Pay

• This is the most common type of scheme, where the employee “earns” holiday pay according to how much he has worked, and this is accumulated in a “Holiday Fund”.
• When it suits the employee he can be paid his holiday pay, which may be (but not necessarily) the amount accumulated up to that time.
• Enter the amount “earned” in the Added to fundcolumn for every period as appropriate.
• If Holiday Pay is just an amount paid without regard to a fund with regular contributions, then enter the amount paid in the Added column, so that the balance remains zero.
• Tax and NIC are due on the Holiday Pay payments when they are paid, as they count as extra income.
• If, however, the holiday scheme is one specially set up and approved so that no NICs are payable, go to the Employee Details - Work screen and tick the appropriate box (this must be done on a per-employee basis).

 Employee-funded Holiday Pay

• In some other Holiday Pay schemes, the employee makes the contributions or additions to the fund from his own taxed pay. This is like the employee putting money from his wage packet into a piggy bank looked after by the employer, from which he can then draw at a later stage (e.g. when he goes on holiday).
• Click on the button and tick the box to say that the contributions are made by the employee.
• The contributions are made out of he employee’s net pay, and so no further Tax and NIC is due when the Holiday Pay is paid.

Hope this might help

Carol

• Carol Saunders
  Lady of Ledger Book Keeping
  Telford, Shropshire

  
  

• 
  Quote