I previously used Sage Payroll system which allows for holiday pay plus wages to be spread over the number of tax periods required. ie one week wage plus 2 weeks holidays processed in advance over 3 week tax periods avoids employees getting heavy taxed by paying 3 weeks wages in the one tax period.
I moved from Sage Payroll to Kashflow Payroll last year and I had to deal with several complaints from the employees that their Christmas holiday pay was short as they were heavy taxed on with 3 weeks pay on the one pay period. Yes, the system sorts itself out regarding tax with the 1st wage in January, but that's no use to employees at Christmastime. It's a major flaw in an otherwise simple to use programme.
Hi Marie.
Thanks for your suggestion.
We are including this capability in the development of occupational holiday schemes which is already under way.
Cheers
Dylan