Payroll - Automatic pro-rata holiday calculation
Fixing issues with holidays and making pro-rata holiday calculations automatically
Calculate starting holiday allowance from the starting date of the employee for new employees joining throughout the year.
Calculate final holiday allowance based on the end of employment date when employees leave.
Since Xero knows the holiday hours per year and the working patterns, it has everything it needs to calculate this.
If an leaving employee has taken too many holidays before they leave, it is important to ensure the leave is negative.
Furthermore, at the end of the year the employee should be given the option to carry over the holiday or get it paid out. If they select to carry it over, it should be added to the next year accrual, if they select to get it paid out, then a pay item should be added as a one-off to their payslip to pay out the holiday remaining (which should only be allowed in December, or the end of their normal holiday year).
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Kayleigh Collins commented
This is absolutely necessary for hourly staff!!