Change in holiday accrual

If, by mistake you added an employee with paid holidays rather than executive pay, this article will show you how to correct it.

Peter Ejskjær avatar
Skrevet af Peter Ejskjær
Opdateret over en uge siden

There are two things to correct if you, by mistake, added an employee with paid holidays rather than executive pay:

1) Bookkeeping

When you receive paid holidays, Salary books both a holiday supplement and a holiday pay obligation (the value of the holiday days), as well as the cost associated with it. If an employee is not supposed to have paid holidays, then the company has neither the obligation nor the cost associated with it and therefore it should not be booked in the bookkeeping.

As an example, please have a look at the bookkeeping below:

Therefore, if one or more emloyees have been changed to executive pay, then you need to make some corrections to your bookkeeping. You will need to credit 'Holiday Pay Obligation' and 'Holiday Allowance' and then debit 'Holiday Pay Obligation Due and 'Holiday Allowance Due' with the value of the employees' holidays and holiday allowance.

2) Final pay

Certain contract changes in Salary will generate a so-called 'final payroll.' This may occur when you have resigned an employee with remaining paid holidays or changed their employment conditions while the employee has remaining paid holidays. In these instances, the system will generate a final pay to settle the value of their remaining paid holidays to Feriekonto.

In case of this happening, you are welcome to reach out to our support team via our chat function and ask us to delete the automatically generated final payroll due to the employee having been set up incorrectly in the system.

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