How do Public Holidays Work
KeyPay will provide an up to date set of State and Federal public holidays in each business, automatically. They are utilised in the following ways:
- Public holidays excluded when estimating amount of leave required for leave applications (public holidays are determined based upon the employee's default location)
- Pay conditions may be set up to automatically pay employees at different rates for public holidays
Please note that unless pay condition rules are set up, public holidays are not automatically applied during a pay run.
Set up requirements for public holidays
For public holidays to function, the following steps must be taken:
- Configure the state for your locations (if necessary)
- (optional) set up pay conditions to automatically apply public holiday rates
Checklist relating to public holidays
- Assign each location a state in payroll
- Manually add public holidays for custom holidays not automatically included such as local/regional and company authorised (e.g. picnic days) public holidays, and assign each location a state.
Manually Adding Public Holidays
The settings for Public Holidays can be accessed and updated by clicking on the 'Payroll Settings' tab on the payroll dashboard, the 'Public Holidays' option is under the 'Business Management' heading:
QBO users get to Payroll Settings by clicking on the ‘Payroll Settings’ button:
This screen allows you to:
- Manually add public holidays - click on required date on the calendar to add public holiday - please check for all government and regional public holidays not listed and add them in manually if required and assign a state to this location in payroll.
Configuring the State on Locations
All public holidays operate at either the state level or at the specific location level. It is important to set up the state information on locations in the system.
Please note that if the state is configured on a higher-level location, it will be used for any nested locations (unless they also specify a state).
To configure the state for locations:
- Go into payroll settings, then to the 'Locations' menu
- Find the required location and click on the name:
- Select the state that the location is associated with:
- click Save
Setting up Public Holiday Pay Conditions
This section describes how to set up a basic rule for public holidays. For more information about pay conditions, refer to this article.
This section assumes that an appropriate Public Holiday pay category has been set up and that the public holiday rates have been configured for the employees.
To add a public holiday rule to your existing rule set:
- click 'Add Rule'
- Give your rule a name, eg: 'Public Holidays'
- in the 'WHEN' section, choose 'Public Holiday'
- in the 'THEN' section, choose 'Apply Pay Category' and then select an appropriate 'Public Holiday' pay category
- click 'Save'
Be sure to activate the rule set and associate the rule set with the appropriate employees.
See related video:
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