You can use Collage to automatically adjust the time off balances of your employees based on how many dollars they have accrued in their vacation pay bank in payroll. This feature is available for customers using Collage Payroll. To get started, make sure to turn on vacation accruals in payroll (4%, 6%, etc.)
Then, a new option will be available when configuring a time off policy in Collage:
Select "Vacation Payout" to enable this feature. Employees will now receive automatic adjustments to their time off balance based on the amount of dollars they have in their vacation pay bank in payroll. This will happen every time a pay period is approved in payroll, and the transaction will be posted as of the last day of the pay period.
The adjusted balance is calculated using the employee's current rate of pay.
Example: Marie earns $100/hour, and currently has $350 in accrued vacation pay. Her balance after approving the next payroll will be $350 / $100 = 3.5 hours.
Note that, as always, an employee's balance in Collage is also affected by future-scheduled time off. For example, if Marie from the example above requests 3 hours of time off in the future, her balance will show 0.5 hours (3.5 available - 3 scheduled = 0.5). The 3 scheduled hours of time off will take effect in payroll in the pay period in which the time off request actually occurs.
Retroactive time off will not affect an employee's balance until it's actioned in payroll.
Example: Marie's balance is 3.5 hours. Marie requests 3 days of retroactive time off (that is, time off for dates that occur in a past pay period). After that time off request is approved, her balance will remain at 3.5 hours, because this time off request hasn't been actioned in payroll yet.
If the payroll admin chooses to add this retroactive time off request to the current pay period, Marie's balance in payroll will be reduced by $300, and once the payroll is approved, her balance in Collage will change to 0.5, reflecting the fact that this retroactive request has been actioned in payroll.
If the payroll admin chooses not to action that retroactive time off request (leaving her dollar balance unaffected), the balance in Collage will also remain unaffected.