How to setup vacation or sick pay in Payroll
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  1. To setup up the parameters, select PR, Utilities, Maintain Payroll Parameters
    • Enter the number of 'Hours in a work week'
    • Enter Maximum sick pay hours, Maximum vacation hours. Sick and Vacation time will stop accruing once the employee has reached this maximum amount. However, once sick or vacation time is used and the employee is no longer at the Maximum, the system will resume calculating sick/vacation until the Maximum is reached again. To limit the total number of hours an employee can accrual per year, use the Max accrual per year setting.
      • Check OK to override to be prompted if an employee is at the limit. If there is no limit, leave all fields blank.
        Note: If a maximum is entered, vacation and sick will stop accruing based on hours in the Start field in PR, Employees, Maintain Employees.
    • Select Max accrual per year to set a max accrual per year for sick and vacation time. This will limit the maximum accrual hours an employee may earn for the year.
    • Select if you wish to accrue vacation and sick hours on overtime, on vacation hours taken, and on sick hours taken. Note: Vacation and sick hours accrue on holiday hours taken automatically. There is no parameter to disable this feature.
  2. To setup the vacation and sick rates for the employees, go to PR, Employees, Maintain Employees and click the Vacation… (this maintains both Vacation hours and Sick pay hours)
  3. In the 'Rate' field enter the number of hours an employee earns per year (for example enter 80 for 80 hours of vacation earned per year).
    • In the 'Start' field enter the number of hours accumulated at the beginning of the current year. This should be the same as the carry over hours from the prior year.
    • If applicable, enter the Earned amount. The number of hours earned so far this year. The 'Earned' field automatically increments based on their rate as the employee earns vacation and sick pay during the payroll process. (NOTE: If initial setup is done mid-year you will need to enter the accrued year to date hours of vacation and sick time in this field. Example: If setting up in July and the employee has accrued 20 hours of vacation time from January 1-June 30 you would enter the 20 hours in the Earned field.)
    • The 'Taken' field holds vacation or sick hours used. This field is automatically updated based on vacation and sick pay used during the payroll process
    • The 'Balance' field is calculated by adding the 'Start' hours plus 'Earned' hours and minus 'Taken' hours (Start+Earned-Taken=Balance).
    • To manually calculate the vacation or sick pay see How to manually calculate vacation and sick pay in Payroll
    • To calculate using a non-traditional method such as rate per hour see How to calculate vacation and sick pay using non-traditional calculation methods

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