UK Payroll: Reporting - Run a report to calculate holiday pay based on a 52 week average
It would be really useful for those of us in the UK if we could run a report to calculate holiday pay based on a 52 week average. Legally this has been a requirement since 2020.
Michelle Lockwood
shared this idea
Hi everyone, thanks for sharing how important automated holiday pay calculations are for you.
We’re updating the status of this idea to Accepted to show it's formally on our radar.
While we’ve already explored several options to automate holiday pay calculations, for the time being this is not a feature we have planned in our roadmap.
We understand some of you are managing these calculations manually. We’d suggest running the Payroll Activity Summary or Gross to Net report over a 52 week period to assist with these calculations.
We’re grateful for your feedback and will continue to monitor interest here.
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Martina Ford
commented
come on Xero.. can you please listen to us and add this function? Or will you pay our penalties should we get the manual calculations wrong?
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Leona Kelly
commented
UK Payroll: Reporting - Run a report to calculate holiday pay based on a 52 week average
This is a critical requirement for UK payroll calculations. This affects employers whose workers have regular overtime aswell as those with zero hours workersThis should be a new holiday option though, not editing an existing holiday setting in Xero - as many xero users will already be manually accounting for this statutory requirement and if an existing setting us changed it will result in errors for them!
Employment Appeal Tribunal (EAT) – UKEATS/0047/13 - Bear Scotland Ltd v Fulton (2014)
The EAT found that regular overtime, which employees are obliged to perform if requested by the employer, should be included for holiday pay purposes...EAT – UKEAT/0334/16 - Dudley Metropolitan Borough Council v Mr G Willets and others (2017)
This case concerned 56 council workers who repair and improve housing. The EAT ruled that payments for purely voluntary overtime should be included in holiday pay if they are regular enough to constitute ‘normal payThere are many more UK legal cases where employer has lost tribunal case...
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Maria Murphy
commented
Due to the court case in July 2022 which states those on 0 ours contract can't accrue holidays at the rate of 0.1207. Does Xero have the intention of enabling a functionalty for it to look at the hours of 52 weeks up to a maximum of 104 and average out to comply with the new regulations?
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JUSTINE MARSHALL
commented
In payroll I would like xero to calculate holiday rates based on 52 week averaging including overtime and bonuses per current regulations.
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Lana Laing
commented
As this is a statutory requirement it would be extremely helpful if xero could run a report to show this instead of multiple calculations being done every month for numerous employees. further than this when holidays are booked through xero should the calculation be automatically done via the system when paying employees. So when you are running payroll for the person where the holiday hours show the box with the holiday pay rate should be auto populated with the 52 weeks average calculated.
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Ann Mogg
commented
We need to be able to set each individual amount of days due based on the hours they work regularly and to be able to customise it when necessary.
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Fiona Thomas
commented
This is a critical requirement for my practice as we have many clients whose staff are on zero hour contracts and therefore require their holiday pay to be based on a 52 week average. I did not know it was a requirement since 2020 but I have been informed by our HR consultant that there are many employment cases that are arising as a result of this not having been adopted in payroll practice.