Holiday Commission – Bonus Top Up Rate
If you have employees who earn commissions or bonuses (variable pay) you may need to pay holiday commissions when employees take annual leave (relative to employment law in your region). If so, you can enter the last known top-up rate manually into Loop HR – allowing the system to calculate the precise holiday commission (hourly top-up rate) as part of the payroll process.
What is a top-up rate?
Top-up rate is the average hourly rate paid (over and above base rate) for the past 52 weeks. Loop HR will calculate the figure for you using the relevant data from Loop as per your Payroll settings
within the system.
How it works
From the list of employees (within Payroll > Settings) enter the last ‘top-up rate’ used before you started using Loop HR Payroll. The system will use this figure, along with payroll data generated
within Loop HR to calculate a precise rolling commission top-up value.
This example is monthly pay; however, the system will allow for your exact pay cycle. From your first payroll, the system will read 11/12ths of your manual figure and 1/12th of the average commission
top-up from the first pay period in Loop HR. In month two, it will read 10/12ths of your manual figure and 2/12ths of the average commission top-up from Loop HR. This is repeated until the end of
the first year of pay, where the system will use Loop HR average top-up figures.
How to set up employee holiday commission top-up rate
1. From the Loop HR navigation go to Business > Payroll
2. Click Settings
3. From your list of employees enter the “top-up rate” last used before using Loop HR Payroll.
4. This figure is the current total amount paid for each hour of holiday taken. Click on the ‘Total Rate’ to see a breakdown of commissions/bonuses earned over the past pay periods and hours worked for the last 52 weeks.
Note: If you have questions about setting up your ‘top-up rates’ contact support via live chat.
