If you need to pay your employees early, such as before Christmas, while taking advantage of splitting tax and national insurance across pay periods, you need to create a new pay element and process a holiday advance. To do this, follow the steps in each section below.
Create a pay element
📌Note: If you've processed holiday advance previously and enabled holiday advance against your basic pay element, you can skip this section.
Click Payroll, and then click Pay Elements.
Find and select the pay element you use for basic pay.
Click Open Pay Element, and then select the holiday advance checkbox.
Click Save and Close.
Update standard pay elements to apply the change to all employees.
Process holiday advance
📌Note: You can't assign holiday advance to employees in bulk.
Click Payroll, and then click Run Payroll.
Find and select the required employee.
Click the Holiday tab, and then enter the number of weeks to advance.
Click the NIC periods tab, and ensure the values are correct.
Click the Calculate tab, and make sure the values are correct.
Click Save.
Repeat steps 2 to 6 for each employee.