Vacation Pay within the employee profile allows payroll administrators to manage employee vacation balances, configure vacation pay settings, and apply accrual adjustments when required.
Two configuration methods are available:
Accrue per period: Vacation pay is calculated and accumulated with each payroll but is not automatically paid to the employee.
Payout per period: Vacation pay is calculated and paid to the employee with each payroll.
Configure Vacation Pay
Vacation pay settings can be configured in bulk under Business Settings → Vacation Pay.
You can also configure per employee, through the main navigation menu → Employees → Name → Vacation Pay → Create Vacation Pay.
Assign to one or more employees:
Method
Manual: Accrues per period
Per Period: Payout per period
Percentage: desired % amount of accrual or payout
Effective From: start of pay period for vacation to accrue
Effective To: Only required if the vacation pay setting has an end date or if you plan to change the method or percentage in the future.
Vacation Balance Management
To view and adjust vacation pay amounts in payroll, you can navigate to the main menu --> Employees --> Select Employee --> Vacation Pay
This section provides a summary of the opening balance, vacation accrued, vacation paid and remaining balance. The balance includes vacation amounts from completed payroll runs as well as the current upcoming payroll, if applicable.
Accrual Adjustments
You can adjust the vacation balance by entering an amount to add or deduct:
Accrual adjustments will apply to Ending Balance once the payroll with the adjustment is marked as paid. An accrual adjustment only modifies the tracked vacation balance; it does not generate a payment or move funds.
Display Vacation Balances on Pay Stubs
To display the vacation accrual balance on employee pay stubs, go to Main Menu → Business Settings → Pay Schedules → Configuration.
Select Edit, enable Vacation Accrual Balance, and click Save.
Important Considerations
Vacation accruals set up in Time Off are tracked in hours or days, while vacation accruals set up in Payroll are tracked in dollars.
Vacation accruals in Payroll and Time Off are tracked separately.
The vacation pay balance in Payroll is used to calculate the corresponding vacation balance in Time Off only when an employee is enrolled in a Vacation Payout policy.
If an employee is enrolled in an hour- or day-based Time Off accrual policy, adjustments made in Time Off or Payroll (via Adjust Accruals) do not sync automatically. To keep the balances consistent, you must manually apply the same adjustment in the other section.