In 2024, new legislation was introduced which affected how holiday entitlement and pay must be calculated for workers in the UK. Rolled up Holiday is a new pay element that can be applied to the team member in the current period. This pay element is a calculation made up from a 12.07% of basic pay plus any holiday payable pay elements that make up the gross pay for the period for the team member.
Holiday pay treatment in pay element settings
To find out if a pay element has the holiday pay toggle enabled, follow the steps below.
From the company dashboard, click Settings.
In the Payroll settings block, click Pay elements.
On the relevant pay element, click the action cog ⚙️ then click View details.
Note: By default, the toggle will be set to no. Currently, you cannot edit the core pay elements. If you require the toggle to be enabled, you can duplicate or create the existing pay element.
Holiday pay treatment toggle when duplicating/creating pay elements
When duplicating or creating your own pay elements, you can set if you would like this pay element to have 'Holiday Pay' enabled. This will be disabled by default.
Click Pay elements then on the relevant pay element, click the action cog ⚙️.
Click View details then click Duplicate element.
Enter a name, toggle on the holiday pay then click Save.
Override holiday pay figure
Sometimes you may want to override the calculated holiday pay figure. To action this, follow the steps below.
Click Payroll to open the current period, then click Team tab.
On the relevant team member, click the action cog ⚙️ then click Preview pay statement.
Next to holiday pay, click the pencil ✏️ icon, enter the desired figure, and then save by clicking the tick icon.
Once the numbers have been edited, hover over them to reveal the original number that was overridden. You can revert back to the calculated value at any time by clicking the edit icon, removing the figure, then save again.
Exclude rolled up holiday pay
A team member with rolled-up holiday enabled may go on some type of statutory pay, at some point. For this instance, they cannot be paid rolled up holiday. When this happens, before the 12.07% calculation is run, the system will check to see if they are on any type of schedule or statutory leave. If this happens to be the case, then the calculation will return and display 0.00 value in the current period. You can still go into their pay preview statement and override this value.A tooltip will be displayed informing the user that the team member is receiving statutory pay during the period. Once the team members' statutory pay has finished and they still have the rolled up holiday enabled then this will revert to calculating 12.07%.
Rolled up holiday calculated in the changes tab
A new button will be available on the changes page called Refresh changes. To navigate to this area, follow the steps below.
Click Payroll to open the current period, then click Changes tab.
Click Refresh changes and choose what you wish to update.
This feature will allow you to run the pay calculator, which will then apply any rolled up holiday pay elements to the appropriate team members. A tool tip will be displayed showing when the pay calculator was last updated.
Note: This is not a mandatory action to apply rolled up holiday but rather just a viewing tool to see what changes are being applied in the current period.
Bulk turn on rolled up holiday pay
You can select multiple team members in the team area of the app and enable the 'Rolled up Holiday' to those selected. To do this, follow the steps below.
Click Team, then tick the relevant team members.
Click the blue Actions cog ⚙️, then click Manage rolled up holiday.
Turn this on for the team members, then click Save.
Supplementary Pay Runs
When Rolled Up Holiday Pay is calculated for a supplementary run, the settings used will remain consistent with those from the initial run. If Rolled Up Holiday was enabled for certain team members, it will remain enabled for them during the supplementary run.
Backdated Pay
If a gross backdated addition is paid in the current period, Holiday Pay will be calculated on that back pay. However, if you choose to ‘Backdate for all affected periods’, Holiday Pay will not be applied.