Quick payroll and annual leave calculation please!

Jo Legg

Dear All



I have a new client, Ltd Co with a new employee-they have asked me to calculate what pay would be based on:

Starting April 2012-when business started:

Works 3 working days per week,7.5 paid hours @ £7.50 per hour = £675 per month but they calculated monthly salary as 3 x 7.5 x 52 x £7.50/12 = £731.25

which is right??



also,from July, she is working 2 Saturdays per month for 6 paid hours @ £7.50 per hour = £90 but again they have calculated monthly salary as 12/4 x 52 x £7.50/12 = £97.5??



Help!!



Also, what would annual leave be?



I say 5.6 weeks x 3 days plus 3 hours = ?????????



THANKS

coojee

They're right (assuming paid calendar monthly) as your figure of £625 is only for 4 weeks so the employee would only get 48 weeks pay in the year. The annual leave is already built into the pay (they're paid for the full 52 weeks but will only be working for 46.4 weeks)

peaman

I agree with coojee.

To work out the actual hours of holiday entitlement because of the irregular workings hours and the shorter hours worked for the first 3 months, I would first work out the total hours that should be worked in the first year...

22.5hrs x 52 weeks = 1170hrs
12hrs x 9 months = 108hrs
Total = 1278hrs

1278/52weeks x 5.6wks = 137.63, which I would round up or down to the nearest 1/2 hour.

I don't know if this is strictly correct, but it is logical (if I did the calculation correct!). Perhaps there should be a separate calculation for the first 3 months, and another from July when the hours change.

ACAS may sat differently, they issue a good booklet on holiday pay, which I have somewhere.