UK Payroll - Allocate leave to different pay period
Currently, Xero automatically assigns holiday leave to the pay period in which it falls. However, for businesses with a different pay schedule within the tax periods, (e.g., a financial period running from the 6th to the 5th of the month), such as cut off being the 28th of the previous month and paying on the 5th of the month. this can cause confusion and misalignment in holiday pay processing. Employees may receive their holiday pay in a month that doesn’t align with the leave taken, leaving them out of pocket or causing administrative burdens.
Proposed Solution: Provide an option to assign holiday leave to a specific pay period. For example, if an employee requests leave for 30th of March, the leave pay should be processed in May pay (and not April's), in line with the company’s financial period. This would prevent confusion and reduce the need for manual adjustments, especially for larger teams.
Benefit: This feature would make it easier for businesses to manage holiday leave for multiple employees, ensuring that leave payments are processed in the correct pay period and improving payroll accuracy.
It also allows employees to manage their finances much better and have a stable income.
