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Keeping track of vacation dollars earned is easy in PaymentEvolution Payroll.

There are two aspects of vacation pay, dollars and hours, and two ways to pay it out—accrue, or release each pay.

See definitions below:

Vacation Dollars: This is a percentage of earnings and benefits in a given pay run that are subject to a vacation calculation. The employee earns vacation dollars in each pay run that you perform if the earnings/benefits used are subject to vacation.

Vacation Hours: This is the time the employee earns in addition to the dollars for vacation. You can track this in your HR system

Accrue: These vacation funds will sit in the employee’s vacation bank until they are paid out. They are taxed at the time of the payout.

Release Each Pay: These vacation funds will be calculated and added to each payroll and taxed at that time. 

*If your province considers vacation time as an earned benefit subject to accrual, it will be calculated each time you draw from your vacation bank.

How to set up vacation for your employees:

A. Go to Settings.

B. Click Pay Rules.

C. Click Vacation.

D. Click Add.

E. Set New Rule Name.

F. Set Vacation Percentage. If you would like to provide your staff with a fixed amount of vacation per year (i.e. you do not use percentages to calculate vacation), you can set up a manual vacation bank and have the service draw down the amounts as your staff uses vacation. For example, you can set up a fixed vacation amount ($2000) per employee and have your employee use a portion of this banked amount when they take a vacation.

G. Select Accrue or Release Each Pay.

H. Click Save Rule.


I. Go to the Employees.

J. Click the Ellipses.
K. Select Profile.

L. Select Payroll.
M: Under the Vacation section, Click the > to edit.

N. Enter the amount in the Vacation Pay Owing Section.
O. Set the rule you created to Automatic Vacation.
P. Click Save.

 

When it's time to process payroll, you can include vacation pay for employees.

Q. Click Run Payroll.

 
R. Click Timesheets.
S. Click + to add additional earnings for the employee.
T. Select Vacation from the earnings code drop down.

U. Enter the Dates, Rate, Hour, and Total Earnings.
V. Click the Add and Submit Button.
*If the employee took vacation time you can add the hours in as well to have them recorded as insurable hours (you will still need to enter the total manually.

Please Note:

  • You will have to manually update each employee's vacation balance annually to align with your company policy.
  • Ensure you are providing the minimum vacation amounts required by your province or territory's employment standards.
  • The vacation bank can be 'overdrawn' and a negative balance will be shown. This can be useful if you have an employee take more vacation than you've allotted.
 
 
 
 
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