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CANADIAN: How to setup Vacation Accrual in dollars v19.4 and later

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CANADIAN: How to setup Vacation Accrual in dollars v19.4 and later

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To set up the Vacation Accrual calculation:

  1. Go to 5-3-1 Payroll Calculations
  2. Enter the next available record/calculation # in the Upper left corner between the arrows (to find the next number select the arrow going to the right with a line in front of it to see what the last number used was)
  3. Select the Tax Type- 6 Vacation Accrual
  4. The Calculations Type will automatically default to 3-Employer Cost
  5. The Calculation Method will automatically default to 2- % Total Wages; you can change this method as desired
  6. Enter your Default Rate (typically 4%)
    1. If vacation is earned and accrued on vacation, you will calculate a different default rate by multiplying the recursive portion of the tax by the base rate.
      • Example: If your default rate is 4% and you accrue vacation on top of vacation the default rate would be 4.16%
  7. Enter the appropriate Job Expense, Shop Expense, Overhead Expense, Admin Expense, and Credit Account
    1. The credit account you use to maintain the vacation balance must be an account that is set up to use subaccounts, and it cannot already have subaccounts associated with it.
  8. Click File, Save

 To assign the calculation to the employee:

  1. Go to 5-2-1 Employees
  2. Select the Employee who accrues the vacation
  3. Select the Calculations tab, enter the calculations, and put Yes in the Active column
  4. Click File, Save

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