The HP6 transaction can be used to pay Casual staff 6% Holiday Pay each pay.

Note: This payment should only be used for true casual staff, who are employed on a one-off or irregular basis with no commitment to future work. For fixed-term, short-term, irregular part-timers and other similar staff, normal Annual Leave rules are preferable. Those rules will accrue at 6%, and can be paid as Holiday Pay at end of employment or on an as-required basis. See AL-ENT and HP transaction help for more information.

To set up and pay Casual Holiday Pay:-

1. Go to the person's standard timesheet.
2. Enter 1.0 into the Quantity field
3. Select HP6 from the list
4. Press the Add button

(Note: If you already have a payroll open, you should repeat these steps in the person's timesheet in that payroll).

Including Holiday Pay in the Hourly Rate

Often organisations consider including holiday pay in a person's Hourly Rate, and employment contracts are occasionally seen with terms such as 'You will be paid $xx.xx per hour, inclusive of Holiday Pay'.

This is NOT recommended. There have been a number of court cases surrounding this issue, as people have gone back and claimed Holiday Pay on top of the money they had already received. In some cases they were successful. We recommend that, if casual staff are paid 6% each pay in the first place, that it is always set up as a separate HP6 transaction, so that it displays as a separate figure on the person's payslip each pay. It is then absolutely clear that Holiday Pay has been paid.