Answer
Pay annual holidays as you go is a leave setting used for employees whose annual holiday entitlement is being paid out progressively instead of building up as an accrued balance.
How it works in Lightning Payroll
When this setting is enabled for the employee, Lightning Payroll treats annual holidays as paid-as-you-go and uses the holiday pay percentage for those payments. In this setup, annual holiday weeks do not build up in the normal accrued way.
When to use it
This is usually only appropriate where the employee's arrangement genuinely allows annual holidays to be paid as you go under rules. It is not the normal setup for a standard ongoing employee who should accrue annual holidays over time.
Before turning it on
- Confirm that the employee is one of the cases where paid-as-you-go annual holidays is appropriate.
- Check the holiday pay percentage on the employee record.
- Make sure you understand that the annual holiday balance will not behave like a normal accrued entitlement while this option is enabled.
If you are not sure, get payroll advice before changing this setting, because it directly affects the employee's annual holiday treatment.
