How to release accrued vacation for an employee
You can release both partial and full vacation pay accrued in the system. First ensure that your employee is set up for automatic vacation pay (accrual). You can release vacation pay using the following method:
- Start your payrun as usual and AFTER approving their regular hours click the "add other" earnings button beside the employee name you wish to release vacation for.
- In the drop down list, select "Release Vacation Owing"
- Any existing vacation pay accrued for the employee will be shown in the total field. You can override that amount and enter a partial amount (ie less than the amount shown) or even an amount greater than what they have accrued (which will create a negative vacation balance).
- If your employee took vacation time you can enter the hours, to make them insurable, BUT you still need to input the total. Leaving the total at 0.00 will release all vacation owing.
- If you need to release all accrued vacation (including any vacation that will be accumulated on this particular run), check the box "Release all vacation pay including current earnings"
It is recommended that you release all accrued vacation prior to terminating an employee
Choosing this option will display "0.00" as the current vacation amount. This is correct and will be adjusted once the system calculates the amount owed after the calculation step
Vacation Pay on Vacation?
In some provinces vacation pay is subject to vacation. The program will apply this, or not, based on the employee's province of employment. If you are in one of the following provinces, vacation is calculated on previously earned vacation, per labour standards from each province:
Some notes to keep in mind:
- Ensure your employee is set for automatic vacation tracking
- In the release vacation pay box, choosing the default amount will release any accrued vacation up until the pay run you are performing. This will not release vacation accrued in the new / current pay run.
- Entering an amount less than the vacation balance of the employee will perform a "partial release" and deduct that amount from their overall vacation balance.
- Entering an amount greater than the employee's vacation balance will deplete all vacation balances and create a negative entry as their vacation balance. This may be useful if you are allowing your employee to take vacation up front before accruing it. Future accruals of vacation will adjust the negative amount accordingly.
- The vacation amount will only be shown AFTER the calculation step - specifically on the REVIEW step.