Contents

• Configure AHP behaviour on company pay elements
• Reporting
• View current rate
• Paying AHP
• Importing historic data
• Non weekly pay periods

Introduction

Average Holiday Pay (AHP) ensures employees don’t lose income when taking holiday. It’s calculated using average weekly earnings over the last 52 worked weeks (up to 104 calendar weeks if needed). Only weeks where the employee was paid and not on holiday or receiving statutory payments are included.
Some payments, like expense reimbursements, may be excluded from the calculation.

Configure AHP behaviour on company pay elements

The system default pay elements are set up with the below Average Holiday Pay behaviour. 

These can be edited in Company Setup > Pay Elements > click on the edit button next to the required pay element or you can click + Add pay element to create a new one.

 Average Holiday Pay behaviour options:

• Include - this payment will be added to the total earnings for AHP.
• Exclude - this payment will not be added to the total earnings for AHP.
• Veto - this indicates that the pay period in which this payment is made does not represent a normal earnings period and therefore the entire earnings period should be excluded from the AHP calculation. This is usually used for Statutory Sick Pay or Statutory Parental Pay.

Reporting

In Reports > Payroll > Average Holiday Pay Report or in Pay > Pay run > Reports > Average Holiday Pay Report you can find the employee's details, their total eligible earnings each pay period and the last column shows the Weekly AHP value as calculated at the selected pay date. 

A pay period with a blank indicates that period was not normal, either because there were no eligible payments or the payslip included veto payments - this is excluded form the AHP calculation. 

A pay period showing 0 indicates the employee was paid but their eligible pay was reduced for some reason (e.g. over payment deduction) - this is being included in the AHP calculation.

The report can be downloaded as a CSV, Excel or PDF

View current rate

You can view the current AHP rate for an employee in both weeks and days by clicking the AHP rate button when editing an employee’s payment.

The Average holiday pay rate /day / week for that employee on that pay date will be displayed.

Paying AHP

To pay AHP go to the employees record in Enter Payments tab on the pay run and click + Add payment 

In Payment type select the default Holiday (AHP) or a pay element you created for the average holiday pay. The Description can be overwritten and you will be required to enter the amount of holiday days you wish to process. The Rate field is automatically calculated and cannot be overwritten.

Importing historic data

Historic payments which support the AHP calculation can be imported using the templates attached at the end of the article. These values can be found in the Adjustments section of an employee’s page. As they are used in the calculation they are also visible in the report. 

System figures take precedence over imports, i.e. you cannot replace a real payslip figure by importing a different one.

There are two supported imports:

Full import

The per period earnings for AHP for every normal period are imported. These are treated in the same way as in system payments for the calculation.

Periods with no earnings are considered not normal and should be excluded from the import, but £0 payments are included in the calculation.

Please use the ahp_per_period import template and complete the following fields:

• Pay ID/ Employee Code - enter the employee's RTI Payroll ID or Employee Code
• Pay Date - enter the pay date the earnings relate to
• Pay - enter the amount for AHP calculation in the relevant pay run

Partial import 

Where it is not possible to obtain per period earnings, the customer can import the AHP rate as it was on the migration date, along with the number of weeks this applies to.

Importing £500 with a 10 week count has the same impact as importing £500 separately for each of the last 10 weekly pay periods. 

Please use the YTD import template and complete the following fields for the AHP calculation: 

• Employee AHP valid at - enter the pay date when this AHP value was valid
• Employee AHP value - enter the employee’s weekly AHP amount
• Employee AHP week count - specify the number of weeks the AHP value applies to
• Employee AHP scheme - this field can be ignored, as currently only one AHP scheme is supported

Non weekly pay periods

The legislation is defined in weeks.  Where the employee is paid on a monthly, quarterly, biannual or annual basis the values are adjusted in some way to achieve a weekly rate. The system uses the following calculations to convert from monthly pay to a weekly value, where N is the number of normal pay periods: