VACATION PAY CUT-OFF

• Description
• Opening Screen
• Procedures
• Sample Report

PROCEDURES

Go to Main Menu > Vacation Tab > Cut-Off VP YTD Amounts and complete the following:

• Division: Only required if you are a multi-divisional site and want to restrict the report to a specific division. If left blank all divisions will be processed.
• Vacation Year: Ensure that the correct vacation year is entered. If you enter a Division the year will be set to the year of the 'Vacation Start Date' in the division's master record.
• Employee Status: Leave blank for All or enter a status or tag the list.
• Calculate Hourly Option: Check if the 'Hours Times the Regular Job Rate' method of calculation is wanted. The system will automatically calculate this amount along with the 'Percentage of Vacation Earnings' method amount. The higher of the two will be vacation pay payable.
• Add Tickets to Hourly Rate: This is only needed if you select Yes for Hourly Option Calculation. Select Yes if you want the rates of the employee's current active tickets added to their hourly rate when calculating the Hourly Option amount.
• Calculate VPay On VPay: Mormally set to No as this option is mainly used to determine a total pay out for 'what if' scenarios.
• VPay on Cheque Employees: Check if you want to select only those employees who have vacation pay paid automatically on their cheques.
• Create Journals: Set to 'No' until trial mode has been verified.
• Create New Vacation Year Records: Set to 'No' until trial mode is verified and completed.
• Increment Division's Vacation Pay Year: Set to 'No' until trial mode is verified and complete.
• Vacation Pay Year Start/End Dates: Will be system generated, pulled directly from the Current Vacation Year set-up in the Divisions Maintenance.
• Vacation Pay Period: Enter the pay period that you defined for the vacation pay run.
• Run Code: Use the run code for the pay period record that you set up for the vacation pay run.
• Journal Sheet Date: Choose any date within the Vacation Pay period date range. Suggestion: use a journal sheet date for these transactions that is different than the sheet dates you used for other journal entries in this period.
• Vacation Pay Pay Code: Choose the pay code set up for the Annual Vacation Pay. The pay code should be flagged as 'EI Earnings', 'CPP Earnings', 'WCB Earnings', and 'Vacation Pay Earnings' to calculate correctly.
• Account Number: Enter the Vacation Pay account number as listed in your General Ledger.
• Deduct V-Pay Paid Early From:
  • Not Applicable: Only used for a mid-year pay out.
  • Gross (Already Taxed): Select if you Have Taxed the vacation pay advances during the year.
    The Pay Code for V-Pay Paid Early should then be the Pay Code used for Vacation Adjust $/Hours as it is an 'adjusting entry only' type and will only add the paid early amount to the next vacation years opening earnings balance and not pay when the cheque is created.

    Vacation Pay	$ 5000.00
    - Advances	$ 2000.00	Jrnl Entry with 'Vac Adjust $/Hrs' paycode
    Payable/Taxable	$ 3000.00	Jrnl Entry with 'Vac Pay' paycode

  • Net (As a Deduction): If you have NOT Taxed the vacation pay advances during the year then we want to create a journal using a Deduction pay code so that the full vacation pay amount is taxed then the advanced amount is deducted.

    Vacation Pay	$ 5000.00
    Payable/Taxable	$ 5000.00	Jrnl Entry with 'Vac Pay' paycode
    - Advances	$ 2000.00	Jrnl Entry with 'VacPay Deduction ' paycode

  Press F9 to or Click Accept to proceed.