Earnings Periods: Holiday pay paid in advance: employee stays at work & takes holiday later
If a weekly paid employee does not take their holiday until some time after gettingpaid for it eg a member of the maintenance staff who gets their holiday pay before thefirms annual close-down period but they remain at work and are expected to taketheir holiday later, the employee calculates the NICs on the pay at the time it is paid.
Regular Interval Rule (Method A) Used
If the employer used these rules, NICs are due on each weeks pay separately iefor the holiday pay and the normal weekly pay.
Holiday Earnings Period Rules (Method B) Used
If the employer used these rules then, for example:
- a three weekly NIC is due on three weeks pay received before a fortnights general closedown; and
- separate weekly NICs are due on the earnings during the closedown.