Set Up Payroll for Statutory Holiday Pay

To support statutory holiday pay based on the local regulations where your organization operates, you must perform some setup. After you perform the setup, the statutory pay calculation becomes part of your regular payroll process.

Set up the HR base calendar for statutory pay

To indicate which days are statutory holidays, set up the HR Base Calendar page. For more information about how to set up an HR base calendar, see Set Up HR Base Calendars.

To set up the HR base calendar for statutory pay

  1. Choose Lightbulb that opens the Tell Me feature., enter hr base calendars, and then choose the related link.

    The HR Base Calendars opens.

  2. Select the hr base calendar for which you want to set up the statutory holidays, and then on the action bar, choose Manage > Edit.

    The HR Base Calendar Card opens.

  3. To indicate which days are statutory holidays, select the checkbox on the row for the day, for the applicable column.

    You define the column on the Advanced HR Setup page, on the Statutory Pay FastTab, in the Calendar Day Calc to Use field.

Set up advanced HR setup for statutory pay

To support statutory holiday pay based on the local regulations where your organization operates, you must set up the Advanced HR Setup page.

To set up advanced HR setup for statutory pay

  1. Choose Lightbulb that opens the Tell Me feature., enter advanced HR setup, and then choose the related link.

    The Advanced HR Setup page opens.

  2. On the Statutory Pay FastTab, perform the following steps:

    1. To specify that you want Sparkrock 365 to calculate statutory pay for HR employee assignments where the Pay Type field has a value of Salary on the respective HR Employee Assignment Card page, turn on Calc. Stat. Pay for Salaried Employees.
      When Calc. Stat. Pay for Salaried Employees is turned off, Sparkrock 365 only calculates statutory pay for HR employee assignments where the Pay Type field has a value of Hourly.
    2. In Calendar Day Calc to Use, specify the day calculation field in the HR Base Calendar to use to indicate statutory holidays.
    3. In Earnings Period Date Formula, specify the start date of the earnings period from the end of the week before the statutory holiday.
    4. In Calculation Method, specify one of the following methods to use for statutory pay calculations:
      • Percentage: The statutory pay calculation is based on the percentage that is specified in Earnings Period Percentage.
      • Average Day: The statutory pay calculation is based on the calculated average pay per day. When this option is selected, the value in Earnings Period Percentage cannot be changed.
    5. In Earnings Period End, specify one of the following methods to use to determine the period end for statutory pay calculations:
      • Previous Week: Considers the value in Earnings Period Date Formula to determine how far back earnings qualify for statutory pay. Uses the end of the week as the end of the earning period calculation.
      • Previous Day: Uses the day before the statutory holiday as the end of the earning period calculation.
      • Previous Pay Period: Uses the end of the previous pay period as the end of the earning period calculation.
    6. In Earnings Period Percentage, specify the percent that is to be applied to the earnings for the statutory holiday period when determining the pay for the holiday. Earnings are determined based on Earnings Period Date Formula and Earnings Period End.
    7. In Allocation by Dimensions, specify whether to create general ledger account allocation based on the distribution of the dimensions in the earning period of the statutory pay calculation. For more information, see Set up Statutory Pay Allocations by Dimensions.

Set up HR pay codes for statutory pay

HR pay codes indicate which earnings are to be used to calculate the statutory holiday pay, and which earnings code is to be used to pay the statutory holiday pay amount.

To set up HR pay codes for statutory pay

  1. Choose Lightbulb that opens the Tell Me feature., enter hr pay codes, and then choose the related link.

    The HR Pay Codes page opens.

  2. In the Statutory Pay Factor field, specify the factor that is to be used to determine how much of the rate to include.

    For example, if you want to use the full rate of hourly pay, enter 1.

  3. To indicate which earnings are to be used to calculate the statutory holiday pay, in the Statutory HR Pay Code field, select a code.

Set up Statutory Pay Allocations by Dimensions

Sparkrock 365 provides the capability for you to create general ledger account allocation based on the distribution of the dimensions in the earning period of the statutory pay calculation.

Example

The following example demonstrates a statutory pay allocation by dimension for an employee who worked in 2 departments.

Scenario

Consider the following scenario:

  • Earnings Period Date Formula: -4W

  • Total Earnings during that time: $176

  • A Department dimension is used to track earnings for various departments within an organization.

  • Total Earnings for the employee by Department:

    • Department 1 = $132
    • Department 2 = $44

Result

Sparkrock 365 determines all the departments for which the employee worked that compose the $176 and creates the general ledger account allocation accordingly for the statutory pay line in the compensation journal. Based on the scenario above, the allocation is as follows:

  • Department 1: 75% (132 / 176 x 100)

  • Department 2: 25% (44 / 176 x 100)

To set up statutory pay allocations by dimensions

  1. Choose Lightbulb that opens the Tell Me feature., enter advanced hr setup, and then choose the related link.

    The Advanced HR Setup page opens.

  2. On the Statutory Pay FastTab, turn on Allocation by Dimension.

  3. Choose Lightbulb that opens the Tell Me feature., enter compensation journal, and then choose the related link.

    If required, select a compensation journal template, and then choose OK.

    The Compensation Journal page opens.

  4. On the action bar, choose Home > Load Lines.

    The Compensation Journal Load page opens.

  5. On the Options FastTab, turn on Load Stat. Pay.

Set up statutory pay eligibility

Sparkrock 365 provides the capability for you to support statutory pay requirements that are based on the local regulations where your organization operates. The values that are defined during statutory pay eligibility setup affect the statutory pay calculations that occur when lines are loaded in the Compensation Journal page and on the Compensation Journal Load page, on the Options FastTab, Load Stat. Pay is turned on.

To set up statutory pay eligibility

  1. Choose Lightbulb that opens the Tell Me feature., enter advanced hr setup, and then choose the related link.

    The Advanced HR Setup page opens.

  2. On the action bar, choose Statutory Pay Eligibility.

    The Statutory Pay Eligibility Codes page opens.

  3. For each eligibility criteria that you want to set up, perform the following steps:

    1. In Code, specify a code to represent the eligibility criteria.
    2. In Description, specify a description for the code.
    3. In Order, specify the order in which the eligibility criteria is to be checked.
    4. In Eligibility Type, specify one of the following options:
      • Earnings Period: Uses the values in Eligibility Date Formula and Eligibility Working Days to determine eligibility. For example, did the employee work 30 working days in the last 1 year?
      • Regular Day: Uses the values in the Eligibility Date Formula and Eligibility Working Days fields to determine eligibility. This setting is based on the day of the week where the statutory holiday falls. For example, did the employee work at least 5 of the last 9 Mondays?
    5. In Eligibility Formula, specify the date formula to use to calculate how far in the past to determine eligibility.
    6. In Eligibility Working Days, specify the number of working days for the employee to be eligible.
      If Earnings Period is selected, the value represents how many working days in the past period are required. If Regular Day is selected, the value represents how many working days on the weekday where the statutory holidays falls are required.

Example

Consider the following scenario:

  • Employees receive statutory holiday pay if all the following conditions are met:

    • The employee has been employed for 30 calendar days
    • The employee has worked or earned wages on 15 of the 30 days before a statutory holiday

  • Employees are not required to work the day before and the day after a statutory holiday to qualify for statutory pay.

  • If an employee does not qualify for statutory holiday pay, they are paid their regular pay for working on a statutory holiday.

Based on this scenario, the setup of the Statutory Pay Eligibility Codes page appears as follows.

Code Description Order Eligibility Type Eligibility Date Formula Eligibility Working Days
RULE 1 RULE 1 1000 Earnings Period -4W 30
RULE 2 RULE 2 2000 Regular Day -1Y 5

View Statutory Pay Eligibility Exceptions

To help troubleshoot situations where statutory pay does not appear for certain employees, run the Eligibility Exception report. The report includes details about employees that are not currently eligible for statutory pay for a specific HR pay cycle period.

To view statutory pay eligibility exceptions

  1. Choose Lightbulb that opens the Tell Me feature., enter advanced hr setup, and then choose the related link.

    The Advanced HR Setup page opens.

  2. On the action bar, choose Statutory Pay Eligibility.

    The Statutory Pay Eligibility page opens.

  3. On the action bar, choose Reports > Eligibility Exception Report.

    The Eligibility Exception Report page opens.

  4. Specify values as required.

  5. To view the report, choose Send to, Print, or Preview.

    The report can also be run from the Compensation Journal page.

Statutory pay process for salaried employees

To determine statutory pay in the compensation journal for salaried employees, Sparkrock 365 performs the followings high-level steps:

  1. Retrieves the calculated Salary Hourly Rate that appears on the HR Employee Assignment Card page.
  2. Determines the calculated hours based on the setup of the Advanced HR Setup and Statutory Pay Eligibility Codes pages.
  3. Multiplies the value of Salary Hourly Rate from step 1 with the calculated hours from step 2.

Example

For this example, Sparkrock 365 has the following setup.

HR Employee Assignment Card

The Salary Hourly Rate is 28.21.

Advanced HR Setup

On the Statutory Pay FastTab, fields are set as follows:

  • Calc. Stat. Pay for Salaried Employees is turned on.

  • Calendar Day Calc to Use = Day Calc 1

    Sparkrock 365 uses this field to determine which days in the HR base calendar are statutory holidays.

    For example, on the HR Base Calendar Card page, the Day Calc 1 checkbox is selected for July 1 to indicate that this day is a statutory holiday.

  • Earnings Period Date Formula = -8W+1D

  • Calculation Method = Percentage

  • Earnings Period End = Previous Week

  • Earnings Period Percentage = 5.00

Statutory Pay Eligibility Codes

The following table describes the records that are setup on this page.

Code Description Order Eligibility Type Eligibility Date Formula Eligibility Working Days
RULE 1 RULE 1 1000 Earnings Period -2W 5
RULE 2 RULE 2 2000 Regular Day -1Y 2

Compensation Ledger Entries

The following table describes the compensation ledger entries that exist.

Employee No. Employee Full Name HR Pay Code Date Worked Hours / Days Amount Assignment Amount Per Pay Assignment Amount Earned Amount No. of Days in Pay Period Days Worked in Pay Period
E0020 John Smith EARN SALARY 3/17/2024 67.50 2,115.38 55,000 2,115.38 2,564.77 9 9
E0020 John Smith EARN SALARY 3/3/2024 37.50 2,115.38 55,000 2,115.38 1,424.87 5 5
E0020 John Smith EARN SALARY 2/18/2024 67.50 2,115.38 55,000 2,115.38 2,564.77 9 9
Tip

Tip:
When you load compensation journal lines, on the Compensation Journal Load page, ensure that Load Salary Lines and Load Statutory Pay are turned on.

Results

Based on the setup above, Sparkrock 365 loads the following records into the compensation journal.

Posting Date Employee Full Name Assignment Entry No. Pay Type HR Pay Code Hours / Days Multiplier Paid FTE Amount
4/11/2024 John Smith 2 Salary EARN SALARY 67.5 1.00 1.00 2,115.38
4/11/2024 John Smith 2 Salary EARN STAT SALARY 8.625 1.00 0.00 243.31

The first line is for the employee's salary and the second line is for the statutory pay.

The employee worked 67.50 + 37.50 + 67.50 = 172.50 hours. When the total hours are multiplied by the calculation method percentage of 5%, the calculated statutory hours are 8.625 (172.50 x .05 = 8.625 ).

The statutory pay Amount of $243.27 is calculated as follows:

Hours / Days = 8.625 Salary Hourly Rate = 28.21

8.625 x 28.21 = $243.31

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