I'll share some insights in managing your pay categories in the program.
If you're using the Standard Payroll, the system will automatically assign to the appropriate category when you run payroll for your staff. For more information about this process, you can check out this helpful article: Pay Your Employees.
For Advanced Payroll, you can create a pay category for your employee's holiday pay entitlement. However, I'd suggest consulting your accountant to help you determine the correct category.
If you haven't created a category, here are the steps you can perform: