Reduce the Stress at Payroll Time
Payroll can be a stressful time for any organisation, whatever the sector. Large amounts of variable data need to be processed correctly, in a relatively short space of time.
Whilst from an organisational perspective one or two mistakes would be acceptable, to the employees it affects, it is less acceptable and far more important.
If, as an organisation, your payroll department is also then faced with having to calculate the holiday entitlement and pay for different types of atypical workers then that only adds to the stress and time pressure.
Calculating Holiday Entitlements is Tedious
With PARiM there is a better way
Most organisations still calculate the holiday entitlement for part-time, casual or zero-hour contract workers by calculating the individual’s work hours over the last three months and then calculating their holiday entitlement pro rata.
If you have more than 10 atypical hours individuals this could be several hours work and entail gathering information from many different sources – timesheets, the payroll summaries and the workers' file, collating them all and calculating hours and entitlement for each person separately. Even using spreadsheets this will be time-consuming.
PARiM recognises different types of holiday or leave calculation challenges and helps you by allowing you to manage holiday by the day, half day, hours or on an accrual basis company-wide or by individual. To find out more visit the in-depth page introducing our Absences module
Holiday Entitlements and Pay for Part-time workers
For truly part-time workers who work a consistent or identical number of days per week you just need to pro-rata the number of days, a full-time employee is entitled to by the number of days the part-time staff member works divided by 5 (normal work days per week). So if the full holiday entitlement is 20 days and the part-time staff member works 2 days then the holiday entitlement = 20 x(2/5)
How Holiday Entitlements Work in PARiM
Company-wide absence settings in PARiM
PARiM allows you to enter a holiday allowance company-wide or by individual so if your calculation shows they are entitled to less than the full allowance its easily entered in their staff profile.Try for free
Holiday Entitlements and Pay for Shift Workers
Shift workers will normally be contracted to do a set number of hours per week or month within basic or complex shift patterns. They will normally do the same or similar shifts and hours each week so calculating their leave entitlement is more straightforward and unless they work less than full-time hours they will be entitled to a minimum of 20 days per year.
Holiday Entitlements and Pay for Casual Workers
Can be entitled to holiday pay accrued as they work. They can be entitled to 5.6 weeks ho0liday per year. This would leave 52-5.6 = 46.4 weeks work and therefore industry standard holiday accrual percentage is 5.6/46.4 = 12.07%
Setting Up Accrued Holiday Percentage in PARiM
Setting a different accrued percentage on a worker´s profile in PARiM
Within Absence Settings, PARiM allows you to enter a standard companywide sector specific percentage like the 12.07% above or if you need to you can enter a different percentage of each workers profile.Try for free
Holiday Entitlements and Pay for Zero Hour Contract Workers
People on zero-hours contracts provide a further challenge when calculating the holiday that they have accrued as they work variable hours and irregular shifts or shift patterns. Indeed, in the Retail Sector, it’s not uncommon that these workers may well not just work different shifts but also different positions from week to week such as cashier one week and assistant manager the next.
PARiM can help you with your absence calculation in two ways for zero hours contract workers. If they are entitled to a number of hours absence per month or year then when you enter an absence, PARiM highlights the shift hours that you are about to replace so helping you enter the correct length of absence.
Within a staff member’s profile, you can also enter the standard day length so that when you enter an absence, PARiM will prompt you with the number of hours and the rate that should be paid for the absence. You can also set these staff to accrue holiday based on a percentage and PARiM automatically accrues the holiday or leave entitlement per hour worked. You can then see this and so can the staff member.
Absence Reports in PARiM
Analysing absence types with absence reports in PARiM
There are also absence reports separate from the payroll that allow you to analyse types of absence by department, by period, by position, by staff member or by absence type.Try for free