Deductions vs pension
If a client runs a Salary Sacrifice pension plan, then the holiday trading and employee pension contributions will both come from gross pay.
If not, the holiday trading will come from gross and the employee pension contribution from net pay.
What happens with holiday trading deductions if a person changes role part way through a deduction period?
It would be up to client's payroll team to recalculate and arrange the deductions as necessary.
Is Holiday Trading a gross or net deduction?
If an employee chooses to buy extra days, the salary adjustment takes the form of a salary sacrifice - so the employee will pay the cost monthly. The money comes out of their gross pay - resulting in tax and NI savings for them, and brilliant NI savings for the employer too! On the other hand, if an employee sells days, the value is added to their gross salary, and tax and NI is payable in the usual way.
Is there a report we can download from Reward Manager of all the applications?
Yes there is. Clients can find a deduction report in Reward Manager (the admin portal) from the tab SmartPay -> Administer (on the lefthand sidebar) -> Payrolls (from the navigation menu on the page) -> just above the payrolls listing client can find link to the deduction report called 'Download Deduction Report'.
The report can be filtered and our clients can choose payroll, product, application type, period before they download a summarised or detailed deduction report.