Almost all employees (except the police, armed forces and civil protection services) are entitled to a certain amount of paid holiday, which is known as statutory holiday. This means that that if you are employer sooner or later you will be confronted by some potentially complex holiday pay issues.
For example, if your workforce or a specific employee has irregular working hours, e.g. an employee who works only in term time, in order to establish how much statutory holiday they are entitled to you will need to work out the average hours worked throughout the year. Or what if an employee takes a half day off work, how will this be billed, and how does it correspond to the statutory holiday requirement?
In terms of PAYE there are further potential issues. For example, if you're paying holiday in advance or using a holiday pay scheme, then this might have an effect on NICS contributions depending on specific circumstance.
If all this is beginning to sound a bit too complex for comfort, never fear. With payroll outsourcing from Dataplan Payroll, you can be assured of a payroll solution that has a complete awareness of all holiday pay issues, ensuring that any problems are rooted out before they become an issue.