Adding Holiday Pay to a Timesheet for Fixed-Term Employees

Holiday Pay is a leave type specifically designed for employees who are temporary, short-term, or irregular. This article will show you how to add Holiday Pay to a timesheet.

Updated: June 2023

Info - Blue Block (1)Holiday Pay is entered as a dollar amount on a timesheet.

* Do not enter the dollar symbol $ in the timesheet. Only the amount.

How to add Holiday Pay to a Timesheet for leave taken

Holiday Pay is paid to employees where it is not practical for them to take 4 weeks of annual leave, such as temporary or fixed-term employees on employment agreements of less than 12 months. Holiday Pay is calculated at 8% of Gross income (unless otherwise agreed contractually) and may be included with their regular pay, or accumulated and paid at the end of the employment period.

  • For an example of a timesheet where the 8% PAYG is included in every pay such as for Casual Employees, follow this link.
  • This timesheet example applies to Fixed-term Employees using the leave setting: '8% of gross earnings (temp and irregular scenario)'

Timesheet Holiday Pay Example (1)

  1. Add a new row to the timesheet by clicking on the green + sign.
  2. Select the payment type: Holiday Pay ($) from the dropdown menu on the left of this row.
  3. Fill in the dollar amount ($) for the leave taken on the days in question.
    1. Fixed-term employees are paid their leave from their accumulated Holiday Pay balance.
    2. On this timesheet, the entry is for $130 (dollar amount), not 130 hours.
      1. This is calculated at 5 hours (regular hours) x $26 per hour (hourly rate) = $130
    3. Instead of a daily entry, Holiday Pay may also be entered as a bulk amount to be paid out to the employee.
  4. Adjust the 'Standard Pay' row entry/ies for the corresponding days.
    1. If a full day of leave (Holiday Pay) is taken, the standard pay row for that day should be blank as in this example.
    2. If part of a day is taken as leave, the ordinary work hours for that day should be split correctly between the 'Holiday Pay ($)' row calculation and the 'Standard Pay' row. 
      1. Part day Holiday PayFor example, if this employee only took 2 hours of leave, the remaining 3 hours of the regular 5-hour work day is entered in the 'Standard Pay' row.
      2. The 'Holiday Pay ($)' row entry will be calculated at 2 hours (leave taken) x $26 (hourly rate) = $52 
  5. Update and Save this timesheet. The timesheet boxes will be green when the timesheet has been saved, as in the example.
  6. The 'Gross balance' for the timesheet is the weekly rate without the 8% Holiday Pay accumulated during the week. The 8% Holiday Pay accumulated is shown in the leave liability and paid out in the final pay.
    1. For this example, the Gross Balance is calculated by adding up the timesheet rows: 'standard pay' + 'Holiday Pay ($)' = Gross balance 
      15 hours x $26 (hourly rate) + $130 (holiday pay) = $520 Gross balance
  7. The 'Pay day transfer' amount indicates what the employee will receive in their bank account
  8. To check the Cost Tracking for each separate entry in the timesheet, left-click in the green timesheet box for that entry. You can click on each box to view that entry's cost tracking line. Here is an article explaining the cost tracking for this timesheet.

Info - Blue Block (1)The value of the 8% Holiday Pay accumulated thus far can be found in the Leave Liability table. It is not displayed in the timesheet.

That is it! You have now successfully loaded Holiday Pay on your employee's timesheet.

Info - Blue Block (1)Follow this link to an article taking you on the complete annual leave journey - from the correct settings in the Employee Profile, to completing timesheets, reading leave liability, and viewing how this leave is displayed on employee payslips.