Answer
Pay-as-you-go holiday pay is part of the employee's gross pay for the pay period. When the web app adds the 8% holiday pay amount, it can also increase PAYE, student loan, employee KiwiSaver, employer KiwiSaver, ESCT, and deductions that are calculated from gross pay.
This is expected when the employee is correctly set up for pay-as-you-go holiday pay. It is not a separate annual holidays balance and it should not create Annual Holidays weeks in the leave ledger.
If the figures look wrong, check these items before making a manual correction:
- whether Pay annual holidays as you go should be enabled at all,
- whether the holiday percentage is correct,
- whether the gross earnings in the pay include the right ordinary earnings and taxable allowances,
- whether any gross-based deduction should apply before or after PAYE, and
- whether the pay has already been completed, filed, or paid to the employee.
If pay-as-you-go was used by mistake, do not just delete old rows. Review the employee's entitlement history and process any correction through a new pay or manual adjustment.
