Vacation Accrual (Dollars)

Accruing vacation puts money aside for an employee to be paid while taking time off. In this article, we will go over Accrual in dollars.

1. Add the accrual payroll instruction 

• Under the employee profile, click on the Payroll Instructions tab.
• Click Add Payroll Instruction either above or below the grid.
• From the drop down, select the Vacation Pay Earned (Accrued) benefit.
• If this payroll instruction cannot be found from the drop down, it must first be setup at the organization level.

The system default value is 4%, equal to two weeks a year. If this is the correct amount, click Save to complete the setup.

If the employee's vacation rate is different:

• Click Override Default Properties.
• Under Default Value enter the correct percentage. ie. enter 6 for 6% vacation rate (equal to 3 weeks)
• Click Save to complete the setup.

Now that the Accrual is set up, we also need to add the payout options.

2. Two ways to pay out vacation

• Click on Add Payroll Instructions either above or below the grid.
• From the drop down, select and add the following payroll instructions:

• If the employee is paid by salary:
• Vacation Pay Taken (Salary) - also known as Vacation Pay Taken by Hours at Salary Pay Rate. This is used when employees take paid vacation time off.
  and
• Vacation Pay Paid – used when an employee is not going on vacation, but is getting paid some or all of their vacation dollars.

• If the employee is paid hourly:
• Vacation Pay Taken (Hourly) - also known as Vacation Pay Taken by Hours at Hourly Pay Rate. This is used when employees take paid vacation time off.
  and
• Vacation Pay Paid - used when an employee is not going on vacation, but is getting paid some or all of their vacation dollars.

• Note: If any of these payroll instructions cannot be found from the drop down, it must first be setup at the organization level.

If a Payroll Instruction is added to an employee’s profile after the input sheet was created, remove the employee from the input sheet, and add them back on in order to update changes.