Description

Harmony provides holiday calendars that you can link to a payroll category in order to have the payroll category appear in the paycards automatically. You do not need to use this method if you are using the provincial/territorial rules for statutory holiday pay calculation. If you are using these rules, please create a regular earning and use the Statutory Holiday Pay report. Review this article for more information.

Prerequisites

• Created a holiday calendar
  Warning: You should only have one holiday calendar per province/territory. The processing will not work if you have more than one calendar with the same province/territory.

Solution

1. Navigate to Payroll Setup > Payroll Categories. 

2. Click "+ New" to create a new payroll category. 

3. Select 'Statutory Holiday Pay'. 

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4. Enter all required fields. 

5. In the "Units Refer to" field, it is selected to "Hours" by default. If you pay by days instead, select "Days". 

6. In the "Number of days prior to Holiday" field, enter the number of days the employee must be employed before they are eligible to receive statutory holiday pay. For example, in the image below, the employee must be employed 14 days prior to the holiday in order to be eligible to receive this statutory holiday pay. 

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7. In the "Rule based" field, make the correct selection.

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   1. If you select "Company Province", this means that Harmony will take the holiday calendar that is set to the same province as your company. This information can be found in Configuration > Setup > Company Information. 

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   2. If you select "Employee Tax Province", this means that Harmony will take the holiday calendar that is set to the same tax province as the employee. This information can be found in Payroll Employees > Employee List. 

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   3. If you select "Federal", this means that Harmony will take the holiday calendar that you set to as "Federal". 

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8. Identify the correct taxes that are applied on the right side. 

9. Click save to save your new payroll category.

Tip: Ensure that you enable your new payroll category in the first step of the payroll wizard (Select Pay Period) when processing your next pay run. By default, new payroll categories are inactive in this step. 

Assigning the Statutory Holiday Pay Payroll Category to Employees and Setting the Rate

Note: When adding a new payroll category, the system will ask you if you want to add it to all employees.

1. Go to Payroll > Payroll Employees > Assign Payroll Category. 

2. Select the employee to whom you want to add the payroll category to. 

3. If you haven't yet assigned Click "+ Add" and select the statutory holiday pay payroll category. If you've already assigned the statutory holiday pay payroll category when you created it, find the payroll category in the assigned list and click the 'edit' button. 

4. Enter the required fields.

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   1. "Rate" refers to the employee's rate of pay. Keep in mind that if you selected 'Hours' earlier in the "Units refer to" field, this should be their hourly rate. If you selected 'Days', this should be their daily rate.

5. Click "Save" to save your changes.

6. Enter the "Daily Hours". This should be the number of hours that the employee typically works.

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7. Click the save button on the right side to save your changes.

Tip: You can always overwrite the rate and/or number of hours, if required, at the time of payroll.