Your candidates’ holiday pay is included the assignment rate that CER send to us and is automatically paid alongside their salary. This is known as “advanced” holiday pay; you might also know it as “rolled-up” holiday pay.
However, your candidates can also choose to have their holiday pay accrued, which means instead of receiving it alongside their salary, we hold the value back and pay it when they’re not working. This can provide a welcome boost when it’s needed most!
There’s also potential savings to be made on the amount of National Insurance they pay on their holiday pay! For example, if they take their holiday pay during weeks where they’re not receiving a salary payment, and keep the value of the holiday pay payment below the National Insurance threshold, they can save the National Insurance they would have paid on the advanced holiday pay method.
Key portfolio is different from most umbrella companies, in that they’ll do everything possible to ensure no one forgets about their accrued holiday pay so they don’t lose out on what’s rightfully theirs. Your candidates’ accrued holiday pay balance is shown on every payslip and we’ll also email a reminder if they have a holiday pay balance in the lead up to the holiday year end.
If you have any other questions about holiday pay or any other topic, drop us an email at hello@key.co.com or or give us a call on 0345 371 0303.