How Is Pay-As-You-Go Holiday Pay Taxed In A Pay?

When Pay annual holidays as you go is enabled in Employees >> Leave >> Leave Settings, the web app calculates the pay-as-you-go holiday amount, normally 8%, from the employee's qualifying gross earnings for the pay period.

The pay-as-you-go amount is added to gross earnings in the pay. That means PAYE, student loan, KiwiSaver employee deductions, employer KiwiSaver, ESCT, and gross-based deductions can change when the pay is completed.

1. Confirm the employee is actually eligible for pay-as-you-go holiday pay.
2. Check the Pay-as-you-go holiday % in Leave Settings.
3. Complete the pay only after ordinary earnings, allowances, deductions, KiwiSaver, and tax settings are correct.
4. If the gross earnings are changed later, review the pay-as-you-go amount and the recalculated deductions before refiling or issuing the payslip.

The web app should show one pay-as-you-go holiday amount for the pay, not a stack of duplicate rows created by repeated saves.