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We have a long time client that now wants to track Vacation Pay and we wanted to ask for some suggestions on how to best configure the Canadian Payroll system. We have it working for a number of clients but they are pretty simple hourly situations.
Situation
Client Employees are all Salary Pay code - however we have calculated the hours and the hourly rate and that is how they have been entering the Payroll. So each week they enter 40 hours at $xxx.xx per hour and it gets to the right 'Weekly' pay for the employee.
Now they want to start getting the Vacation information entered into the system and have it available to to the employee as we move forward.
Client has a WEEKLY pay cycle from Sunday to Saturday - paid the following Friday.
Example
Employee Bill (Salary) earns $72.12 per hour x 2080 hours per year for annual salary.
He has 20 Days or 160 Hours Vacation (units) as his entitlement for 2015 which calculates as
- 1.67 days or 13.33 hours per month
- .38 days or 3.08 hours per week
(edited for testing)
Question
How do we enter this information in to the following fields
Vacation Earning on the Salary Pay code card for each employee
The details on the Employee Card >> Vacation Pay summary button
Desired Outcome
The client would like to have the employee know the number of hours / days of Vacation they have earned to date - and this would include what they have not used from the prior period - sorry - what they earn in the prior year does not go away it rolls over to the new year. We would like to print the values on the Payroll Advice slip and think we have the fields figured out.
Suggestions?
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After a bunch of hours and many coffee - this is what I came up with. If this is incorrect, can I get someone to post a correction please.
Solution
First needed to calculate what the Yearly Vacation entitlement was, as a percentage of the of the Hours Worked Per year.
160 hours / 2080 hours = 7.6923%
Just for additional confirmation - I figured out what the Weekly values would be, and adjusted for rounding - pretty close.
3.08 hours / 40 hours = 7.7%
Now where to enter
In the Payroll - Canada >> Control window - make sure that Vacation Pay is turned on. All the setup in the world makes no difference if this is not done.
Next, after figuring out the %'s you need to enter the 7.6923% into each of the Income Codes on which the person is going to earn Vacation Pay - yes all of them.
(employee card >> paycode >> paycode - update)
Next make sure that the Accrue switches are right - primary is
(Employee Card >> VacSick button)
Critical if you are earning Vacation on more than just Reg / OT / Comm etc. that you select the by Paycode. Enter the Percentage here as well.
(employee card >> VacSick >> Other Options)
If you are accruing Vacation Units as well as dollars, be sure to make this setting in the Employee Card as well.
Hope this helps. And as I said before, if this is not the best way, someone please post a correct way to make this happen.
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