Paying employees
Step 6: Distribute Holiday pay (optional)

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If you haven't already read the Paycheques Overview, see Distributing Holiday pay

To distribute Holiday wages (paid in a lump sum) To distribute Holiday wages (paid every pay period)
To distribute Holiday wages (paid in a lump sum)

To distribute Holiday wages (paid every pay period)

To pay holiday wages to the employee on every payroll cheque, the employee must already be assigned a wage called Holiday Pay-Paid Out.

  1. When you write the employee's first payroll cheque that includes Holiday wages, calculate the Holiday pay amount for the pay period. To do this, divide the percentage of Holiday pay the employee earns by the number of pay periods in your company's payroll year.

  1. Once you've determined the per-pay period Holiday wages amount, enter that amount in the Amount column for the Holiday Pay-Paid Out wage.

  1. Continue on to Distribute other types of wages (optional) if you need to pay those types of wages to the employee.

To distribute Holiday wages (paid in a lump sum)

If you want to pay Holiday wages to the employee in a lump sum, the employee must already be assigned the wage called Holiday Pay-Accrual Paid Out, as well as an employer expense called Holiday Pay-Accrued.

When it's time to pay some or all of the employee's Holiday wages, enter the amount to be paid in the Amount column for the Holiday Pay-Accrual Paid Out wage.

You'll notice that deductions are withheld from the employee's Holiday pay, as well as his or her regular wages.