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Public holidays and payroll





CURRENT AS AT 31 Jan 2022


There are a few questions that we get asked regularly regarding public holidays and payroll and we have listed them below:


Who is entitled to public holiday pay?

  1. employees who work on the public holiday (including the applicable loading)

  2. full time employees not required to work on the public holiday (including if the workplace is closed for holidays etc)

  3. part time employees where the public holiday would usually be a an ordinary working day (for example a part time employee who usually works Monday - Wednesday would be entitled to public holiday pay if the public holiday falls on a Monday - Wednesday then they get paid their usual pay for the week


How do the public holidays get processed in Xero?

We have outlined the steps below to assist you with links to the relevant websites and relevant Xero help articles. Please note these may vary depending on your individual situation. These are not exhaustive.


  1. Ensure that the holiday groups include all applicable public holidays

  2. Ensure that all employees have the holiday group selected for the correct state in the employment tab under their employment record

  3. Ensure that all employees except the casuals have the "include public holidays in payslip" ticked in the employment tab under their employment record

  4. Processing the pays:

  • Full timers: Xero will automatically recognise that the pay run includes a public holiday

  • Part timers: Xero does not know what days are ordinary working days so the public holiday hours will have to be manually entered into the pay run

  • Employees working the public holiday - If your employee works a public holiday where they’ll be paid at a higher rate, adjust the rate of pay in their payslip to reflect the correct value or setup a new pay item with the multiplier of their ordinary rate


What if a pay is processed incorrectly without the public holiday pay? If a posted pay run is missing a holiday, process an unscheduled pay run to adjust the relevant employees’ ordinary hours. If the current pay run hasn't been paid yet, revert it, reset the affected payslips, or the whole pay run then re-enter the pay.


Other information can be found on the Fair Work Ombudsman website.



Natalie Lennon

Founder & Director

Two Sides Accounting

02 9030 0269

www.twosides.com.au

@twosidesHQ

natalie@twosides.com.au https://au.linkedin.com/in/natalielennon


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