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Allow for Holiday pay periods to be paid in advance to avoid being heavy taxed.

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.

  • Marie Reid
  • Jul 18 2019
  • Started
  • Jul 18, 2019

    Admin response

    Hi Marie.
    Thanks for your suggestion.
    We are including this capability in the development of occupational holiday schemes which is already under way.



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