You can configure time off policies to allow Irish employees to request holiday payouts prior to starting their holidays, also called advance pay. For information about government regulations around advance pay, see Part 42-04-35A of The Employers’ Guide to PAYE at the following link:
Overview
Employees request advance pay at the same time they request holidays. If the advance pay request threshold in the time off policy has been met, the Advance Pay checkbox is displayed in the Create Request dialog box when the employee creates the time away from work request in Work > Time Away List. Employees select the Advance Pay checkbox to indicate that they would like advance pay for this time away request. Dayforce automatically calculates the maximum payout employees can receive by multiplying their pay rate by the number of hours they have requested. It appears in the Pay Amount field:
Note: Dayforce doesn't allow employees to request an amount that exceeds their maximum amount.
The payout occurs in the form of a pay adjustment for each day of vacation. The application automatically determines whether advance payouts occur one or two pay periods ahead based on the dates of the employee's vacation and the date on which the time away from work request was submitted. So, if the time away from work request is made two pay periods in advance of the cutover date for that pay period, the application processes and pays out the amount two pay periods in advance. However, if the request is made in the last week before the vacation begins, the payout is made one pay period before the vacation. Usually advance payouts are made two pay periods in advance. The only time advance payouts are made one pay period in advance is for last-minute time away requests.
During the employee's holiday, the application claws back the holiday pay that the employee would normally receive, had they not elected to take an advance payout.
Enable Pay Group Access
Before you can configure advance payouts, you must first configure your pay group to allow employees to receive advance pay. This is done by selecting the pay group in Pay Set-up > Pay Group, selecting the Payroll Properties tab, and then selecting the Allow Advance Payment Weeks checkbox. See Ireland Pay Group Setup.
Configure Dayforce for Advance Payouts
Note: For general information about configuring advance pay, See Configure Advance Pay in the Dayforce Implementation Guide.
To configure the application for advance payouts:
- Go to Time Away From Work > Time Off Policy.
- In the left side panel, select the time off policy you want to modify.
- Go to the Advance Pay section.
- In the Advance Pay request threshold field, enter the number of days within the approval day for the applicable pay period employees can still make advance pay requests.
- For example, with 3 in this field, employees couldn't make requests later than 3 days before the approval date for the last pay period before their vacation.
- In the Minimum number of consecutive holiday days field, enter the minimum number of consecutive days of time away that employees must request in order to be eligible for advance holiday payouts.
- For example, with 5 in this field, employees requesting only 4 consecutive days of time away aren't eligible for advance vacation pay.
- Note: It is recommended that don’t allow users to request partial weeks for advance pay.
- Select the Pay Amount View Only checkbox to prohibit employees from editing the advance pay amount calculated by the system and displayed in the Create Request dialog box. This prevents users from being able to request partial payouts.
- Note: This is a suggested best practice for Ireland Payroll.
- In the Advance Pay Period drop-down list, specify the number of pay periods that can be paid to employees in advance when they request time away. Select 1, and employees are paid one period in advance. Select 2, and employees are paid up to two pay periods in advance, depending on when the employee created the time away request.
- Note: For new time off policies, the Advance Pay Period parameter is set to 1 by default.
- Click Add, and configure the pay codes that will grant advance payout.
- Click Save.