Implementation of the holiday calculation can be done one employee at the time or by installing an import file that consists all holiday settings and accumulated holidays. This instruction will go deeper into how the settings are brought one employee at the time and what does the Holidays view consist of. More information about the import file can be found here.
Employees holiday settings can be found in Payroll > Employee register > Edit Holidays.
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Before taking holiday calculation into use, the holiday year must be opened in Management > Salary info > Holiday credit years.
Read more about the implementation process of holiday calculation here.
Implementing holiday calculation
The implementation of Procountor's holiday calculation can be started by switching the Use holiday calculation switch on. After this, determine how holidays are earned and the amount of the accumulated holidays.
1. Determine the date from which the holiday calculation will start to Holiday earning start date field. Procountor will calculate the amount of the earned holidays based on the start date.
- By default Procountor will calculate 2 holiday days per month during the first holiday earning year. After the first year the default setting is 2,5 days per month.
- It is possible to determine a different number of days earned per month in the Edit holiday earning rules section.
- If the holiday bonus functionality is used (Management > Company info > Usage sittings > Holiday bonus), the starting day of earning the holiday bonus is determined to be the same day as the starting day of holiday earning. The starting day can be changed.
- By default, Procountor calculates the holiday bonus to be 50% of the holiday pay.
Total remaining holiday days field shows the total amount of holiday days that have not been used.
- The field shows the unpaid holiday days from all holiday years.
Total remaining holiday pay field shows the total amount of holiday pay that has not been paid.
- Accrual of salaries (holiday salary payable) must be done with journal receipts. Information on this view affects only to holiday calculation.
Total remaining holiday bonus days field shows the total amount of holiday bonus days that have not been used.
Total remaining holiday bonus pay field shows the total amount of holiday bonus that has not been paid.
- Accrual of holiday bonuses (holiday bonus payable) must be done with journal receipts. Information on this view affects only to holiday calculation.
2. Choose the right holiday year from the Select credit year drop down menu.
- Holiday earning settings from the previous credit years cannot be changed.
- Earned holidays can be changed from previous holiday years.
Year recalculation button enables to recalculate the amount of the holiday pay.
- Clicking on the button recalculates the amount of the holiday pay from all pay slips using the holiday calculation. Further information about closing the holiday year can be found here.
- In order to recalculate the holidays, all salary slips of the holiday year must be at least with Approved status.
3. Click Edit holiday earning rules button and determine the holiday earning rules to the employee.
Holiday earning rule drop down menu shows two option, 14 day rule and 35 hour rule for earning holidays.
- If the holiday calculation basis is Right for time off the same should be selected for the earning rule.
Collective agreement drop down menu shows all the settings which were created in the Holiday pay settings view (Management > Salary info > Holiday pay settings (collective agreement)). If there is no customized rule Procountor will use the default setting No custom setting.
- Holiday pay rules affect hourly wage employees holiday pay earning. The rule can be also chosen for employee who have monthly pay but it will not effect the earnings of holidays. This is a good way to determine the collective agreement to different employees if the Holiday pay setting is named after the collective agreement.
Holiday pay calculation basis drop down menu has the following options for holiday calculation.
- Average hourly option calculates the average hourly wage during the holiday year in which the holidays were earned (earnings during holiday year / working hours during holiday year) and after this uses the holiday multiplier from Holiday pay settings (collective agreement) view to determine the holiday pay for the employee. At the moment, the Average hourly option is carried out for employees working 40 hours a week. If the amount of employee’s weekly working hours is 37,5, the multiplier should be adjusted with the following formula: (multiplier / 40) x weekly working hours
- Monthly standard divider divides monthly pay with 25 and multiplies it with the amount of holiday days.
- Average daily - credit year earnings (basic work + overtime work basic part)/(real working days +1/8 overtime hours)
- Earnings for basic work are calculated based on collective agreement settings.
- Salary types that are calculating the for overtime are 1221 and 1220.
- When choosing Average daily option, one must define the average amount of days the employee is working in a week.
- The combination of 35 hour Holiday earning rule and Average daily option is not allowed.
- Monthly plus shift compensations - holiday pay is calculated from monthly part: formula is monthly pay divided by standard divider 25 and from shift compensation part: formula is cumulative earnings from shift compensations during holiday credit year multiplied with percentage that is set when creating the new holiday credit year.
- Holiday pay is a sum of these two formulas. For monthly part the salary types that are taken into account in calculation need to be added to employee’s salary base.
- When paying holiday pay the software calculates the monthly pay part from the figures in the current salary slip. This way the holiday pay’s monthly part is always up to date.
- Percentage - calculated either based on 9% or 11,5%.
- If percentage is selected the 9% or 11,5% has to be defined.
- Monthly with work day divider
- (monthly salary/work days in payment period) x work days during holiday period.
- 6 holiday days are spent against 5 work days, if the Saturday is not a national holiday.
- Right for time off – holiday compensation is calculated based on 9% or 11,5%.
- If the holiday calculation basis is Right for time off the same should be selected for the earning rule.
Holidays per credit month field lets the user to determine how many holidays Procountor will count per credit month.
- By default Procountor will calculate 2 holiday days per month during the first holiday earning year. After the first year the default setting is 2,5 days per month.
Holiday bonus days per credit month field can be used to determine how many holiday bonus days Procountor will count per credit month.
Reviewing and editing earned holidays
Automatically calculated holidays can be seen in the Earned section. Salary slips that are Approved, Paid, Paid elsewhere or Partly paid are collecting holiday days and earnings. If the salary slips have not been calculated in Procountor or there is a situation that earned holidays should be corrected it is possible to do manually or by holiday import file.
Earned holiday days
- Earned holidays during the credit year can be seen in this field.
- Holiday days are calculated by using the salary slips Working time allocation information and the Holiday earning rules.
Earned holiday bonus days
- Earned holiday bonus days during the credit year can be seen in this field.
Earned additional leave days
- Earned additional leave days during the credit year can be seen in this field.
Cumulative working hours
- All the working hours during the holiday credit year that are calculated to holiday earning can be seen in this field.
- The salary types that are taken into calculation in holiday earning are determined by default but they can be determined again in Holiday earning settings.
- This field is shown only if the Holiday pay calculation basis is Average hourly.
Cumulative earnings
- Gross salary, that accumulates holiday earnings, earned during the credit year is shown in this field.
- The salary types that are taken into calculation in holiday earning are determined by default but they can be determined again in Holiday earning settings. The setting should also be selected on Holidays view in Employee register as well.
- This field is shown only if the Holiday pay calculation basis is Average hourly.
- It is possible to see behind the cumulative earnings figure. When clicking on the cumulative earnings figure, a new view opens up and shows the salary slips with their respective sums as well as the manually added sums that are included into the cumulative holiday earnings.
Daily holiday pay
- Holiday pay per holiday days is calculated to this field.
Holiday pay
- The field shows the total sum of the holiday pay gathered during the credit year.
Holiday bonus pay
- The field shows the total sum of the holiday bonus calculated by the 50% rule.
Daily holiday bonus pay
- Holiday bonus per holiday days is calculated to this field.
Remaining holiday days
- The field shows how many holiday days have not been used.
Remaining holiday bonus days
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The field shows the amount of holiday bonus days that has not been paid yet.
Remaining holiday pay
- The field shows the amount of holiday pay that has not been paid yet.
Remaining holiday bonus pay
- The field shows the amount of holiday bonus that has not been paid yet.
Adjusting earned holiday days
If the amount of earned holiday days is not correct the adjusting can be done to the whole year by clicking Edit yearly figures or one month at a time by clicking Edit monthly figures.
- Adjusting earned holiday days can be done by entering a negative number or a positive number to the Add or remove earned holiday days to a year field.
- A negative number should be given to Add or remove usable holiday days to a year field in order to get the right number of remaining holidays to Procountor.
- For example if earned holiday days during credit year is 30 and the remaining holiday days is 10, the user should set 30 to Add or remove earned holiday days to a year field and -20 to Add or remove usable holiday days to a year.
- Add or remove additional leave days to a year field can be used, if it is necessary too add or remove additional leave days to the employee. When adding the days for the first time, Procountor opens a widow, where it is possible to insert the estimated daily compensation for additional leave days (EUR/day). Later the value can be changed in the Total remaining additional leave day pay field on the top right corner of the page.
- Add or remove cumulative earnings field can be used, if it is necessary too add or remove cumulative earnings of the employee. Changes are made by adding or subtracting from the total sum. For example, if an employee previously had 12 000 cumulative (holiday) earnings, and this needs to be changed to 15 000, the figure can be updated by adding 3 000.
- The Edit earned holidays window changes when the worker is an hourly worker. The cumulative working hours and earnings can be determined to the view.
- Edit monthly figures opens a section where the holidays can be adjusted month by month.
- Adjustment description is mandatory and the same description will come to all adjusted holidays that are made at the same time.
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Earned holidays cannot be brought monthly to hourly workers retrospectively, because cumulative working hours and earnings cannot be brought monthly. Cumulative numbers can be brought with Edit yearly figures button.
Editing remaining holiday
Remaining holidays can be edited by clicking on Edit remaining figures button.
- Adjusting remaining holiday days can be done by entering a negative number or a positive number to the Add or remove days to remaining holiday days field.
- Adjusting remaining holiday bonus days can be done by entering a negative number or a positive number to the Add or remove days to remaining holiday bonus days field.
- For example if the amount of employee’s remaining holiday days is actually 30 but the Remaining holiday days field shows 25, put 5 into the Add or remove days to remaining holiday days field.
- Add or remove remaining additional leave days to a year field can be used, if it is necessary too add or remove additional leave days to the employee.
- Adjustment description is mandatory.
Adjustment History
- The adjustment history can be seen under the adjustments panel.
- The history shows the date of the modification, who has made it, the changes that were made and the description of the change.
Defining additional leave days
In a situation, where an employee has earned less than 24 holiday days during a holiday year because of illness or rehabilitation, it is possible to define additional leave days required by law to the Holidays view.
- Additional leave days and daily compensation can be added by clicking on the Edit yearly figures button.
- Define the amount of additional leave days to the Add or remove earned additional leave days to a year field.
- Define the Estimated daily compensation per additional leave day to the field at the top part of the Holidays view. The number is used on a pay slip when paying the holiday days.
Reviewing paid holidays
Earned holidays are paid by creating salary slips into which holiday salary types are put. More detailed instructions about paying holidays can be found here.
It is possible to see the paid holidays in the Holidays view.
- Paid holidays section lists the payment date, holiday credit year in which the holidays were earned and the amount of holiday days that were paid.
- New paid holiday is listed to the Paid holidays section when a salary slip is in Paid, Paid elsewhere or Partly paid status.
Changing holiday earning rule
Changing of holiday earning rule is possible until employee's first salary slip has been created with the rule.
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For now, changing the holiday earning rule after the first salary slip is possible for monthly worker whose earning rule is standard divider or work day divider.
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The rule can be changed after the first slip is paid if all slips are in paid status and the change is done to percentage base.
The number of holiday days and holiday bonus days earned per month can be edited.
- It is possible to check and update the holiday earning rule for a single year.
- Checking and updating can be done for individual employees in their Holidays tab. When the holiday earning rules are modified (holidays and or holiday bonus days per month) with the Edit holiday earning rule button, a window pops up to confirm that you want to make changes to the earned holidays for the selected year. Most common case is changing the earning rule from 2 days to 2,5 days at the completion of the first year of employment.
Recalculation of holiday pay
The holiday pay can be recalculated by clicking the Year recalculation button.
- Recalculation takes into account all salary slips which had holiday calculation on.
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Please notice that recalculation does not take manually added holidays into account. It calculates earned holidays only based on the salary slips.
- In a situation where the holiday pay settings are changed in the middle of the holiday year, the button will calculate the holiday pay again based on the new setting.