Wildwood Canada BusinessVision Help

Payroll: Vacation Pay

1. Employee takes vacation and gets paid as usual.
   Common for Salaried employees.
   Retain Vacation UNCHECKED, Vacation Rate @ 0%
2. Employee takes vacation and does not get regular pay; instead gets paid accrued vacation amount
   Common for Hourly paid employees
   Retain Vacation CHECKED, Vacation Rate @ x%
3. Employee takes vacation and gets no pay at all: vacation pay is paid out with each pay
   Retain Vacation UNCHECKED, Vacation Rate @ x%

Some more notes about Vacation Pay

• Accruing Vacation Pay does not affect Tax, CPP, EI, Deductions, Benefits. Only when it is paid out are these calculated on it.
• Paying Vacation pay - it is ALWAYS paid out of the GL Acct specified in Special Accts for "Employee's Accrued Vacation" (ie Debit)

To adjust Vacation Pay after an Employee has been set up and saved:

1. Determine amount of vacation pay to adjust (the positive or negative amount) for the employee.
2. Set the vacation pay rate on the employee record to 10% and “RETAINED” to Y. 
3. Process a supplementary timecard for the employee and make their pay amount 10 times the amount of vacation pay to be adjusted (use “Regular Hours” NOT VACATION). The pay amount should be negative if reducing vacation pay and positive if increasing vacation pay. Set Federal Tax, EI, CPP, Insurable Earnings and any benefits and deductions to zero. Process and pay the timecard.
4. Reset the vacation pay percent on the employee record to 0%.
5. Process another supplementary timecard to reverse the amount of pay on the previous timecard, which was used to adjust the vacation pay amount (if a negative timecard was posted, reverse it with positive timecard. If you did a positive timecard then reverse it with a negative). Because the vacation rate is 0%, only the pay amount will be reversed and the adjusted vacation pay will remain. Set Federal Tax, EI, CPP, Insurable Earnings and any Benefits and Deductions to zero. Process and pay the timecard.
6. Reset the vacation pay percentage and method ("Retained") to the original amount on the employee record.