VACATION PAY PROCEDURES

• Create Vacation Run Pay Period
• Validate Year-to-date Vacation Totals
• Adjust Vacation Credits
• Vacation Journal Entry Adjustments
• Adjust Vacation Credits
• Vacation Pay Checkpoint
• Vacation Pay Cut-off
• Miscellaneous Journals
• Create Batch Pay Records
• Print Vacation Pay Cheques/Direct Deposits

A Pay Period description must be set up for the vacation pay run.

• Select Main Menu > Pay Tables Tab > Pay Period Maintenance then either add a new blank record and enter the data or find the period in which the vacation run occurs and click on the 'Duplicate' button. Duplicating will make a copy of the displayed period and adjust the Run Code to the next available letter (B-Z). The Start/End dates can be the same as the normal period.
• The Cheque and Deposit dates should be adjusted as required.
• If you will be using the 'Vacation' Tax Option when creating the Cheques the Pay Run Type can be set to V for Vacation run and the Periods/Year MUST be set to 52 weeks. If the Pay Run Type is not set to 'V' the Periods/Year should be set to 26 for a regular bi-weekly run.
• The Include Pay Codes of Level should be set to 0.

Prior to running your vacation pay, the year-to-date vacation totals should be validated.

Go to Main Menu > Vacation Tab > Run the YTD Vacation Pay Accrual Report for the vacation year using the 'Year-To-Dates' layout. Do not select any options such as Status, Add Credits to Earnings, Calc Vpay-On-Vpay as this report should show only the current values from the Employees' Year-To-Date Vacation page in the Employee maintenance program. Although not mandatory at this point in time, running this report serves as a base to refer to and can be useful as a reference after any journals and/or credit adjustments have been made.

Go to Main Menu > Vacation Tab > Run the Vacation YTD Cross-Check Report. Set the periods to cover the vacation pay year. Ensure the Vacation Year is entered. This will produce a report showing only employee's whose Vacation YTD record's totals do not match the totals obtained by adding each of their pay records. Any differences need to be either explained or have a vacation journal entry created to adjust the YTD amounts as required. The important totals that should balance are the Vacation and Credit Earnings and their respective hours.

Possible Reasons for Differences:

• You may have employees showing whose only difference is the Vacation Pay amount. These will show for employee's who have had a rate change (upon reaching an anniversary) during the vacation year. The earlier pay records show the vacation pay calculated with the prior rate and the YTD total shows the vacation pay calculated on the total vacation earnings and current rate.
• The 'Adjust Credits' program was run prior to the vacation pay run and an employee's credits were adjusted. The difference should be the total of the credits returned.
• The payroll system was started after your last vacation pay run and opening vacation YTD balances were entered directly on the employee's Vacation screen as opposed to making journal entries. In this case the differences should be the last balances from your prior system. If adjusting journal entries had been made to enter the opening balances (the preferred method) then these would show as transactions in the cheque register report and would be totaled for balancing purposes.
• Remote possibility of Data corruption in pay records or YTD records.

As pay records are created the system identifies transactions which are flagged as 'Vacation Pay Credits'. Typically these would be pay codes used for Sick, STD, and WCB hours. When a pay record is created (Batch or Manual) these transactions' credit earnings and hours are posted to the respective Vacation YTD totals on the employees' Vacation Pay screen.

At the annual vacation pay run, these credit earnings may be given back to the employees who qualify (i.e.; those employees who have returned to work). To do this go to the Main Menu > Vacation Tab > Use the Adjust Vacation Pay Credits module. This program displays the employees' vacation credit transactions within the Vacation Pay Year Start/End date range as defined in the employee's master division record and allows you to add or subtract the credits from the earnings.

As the majority of employees are usually eligible for the credits, you may want to click on the 'Add CR$ All Emps' first which will return credits for all employees and then use the '-CR$ from Earnings' to remove the credits from the employees who do not qualify.

Go to Main Menu > Vacation Tab > In the Vacation Journal Entries module to make any immediate adjustment to the employee's year-to-date vacation amounts/hours/paid-out fields if required.

Note: If you have not done the 'Adjust Credits' at this point be careful not to enter Credit Earning/Hours adjustments that may affect the Credit Adjustments routines.

Enter amounts/hours using the appropriate pay codes to increase or decrease the employee's earnings/hours/paid-out. When the journals entries are accepted the amounts will be posted immediately to the employees' vacation YTD's and will be reflected in both the Vacation screen in the Employee Maintenance and on the YTD Vacation Pay Accrual Report.

Examples that could require changes to the vacation year-to-dates would be:

• An employee had accrued vacation credit earnings in the prior vacation run that were not paid as he did not qualify at that point in time. Once the vacation pay was run, these year-to-date totals would have been zeroed by the Vacation Cut-off program and would no longer be in the employee's year-to-date record. The employee has since returned to work. These credit earnings would now be payable. The specific amount would be entered in the journal entry and his YTD Vacation Earnings would be adjusted immediately.
• An employee has been off work on sick leave for the past six months and has not returned to work. When the calculation and comparison of the vacation pay is done, the Hourly Option method will show to be the greater of the two methods to be paid. Since the employee should not qualify for the Hourly Option there should be a change to reflect this. By reducing the amount of eligible vacation hours to below the minimum requirement (i.e.; 1000 hours) the Hourly Option will not calculate thus paying the Percentage of Vacation Earnings method. See the Vacation Rates Maintenance.

After running the 'Adjust Credits' program and entering any vacation journals, again go to Main Menu > Vacation Tab > Run a 'YTD Vacation Pay Accrual' report with the following settings:

• 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: Leave blank for all.
• Status: Selecting a Status or tagging the list will produce a report with only employees of the statuses. It is suggested to leave this blank in order to report on all employees. For instance, if you select 'A'ctive only and you have a terminated employee who was not paid the balance of his vacation when terminated then he will not show on the report. However your site may have a policy that terminated employees do not get any final vacation pay. In this case you would then want to select the other statuses desired.
• Report Layout: Use the 'Vacation Pay' Layout as it will do a recalculation check.
• Sort by: Your choice
• Summary Only: Select NO as you want to see the employees' details.
• Page Orientation: Your choice
• Calculate Hourly Option: Set to Yes if your site pays on Hourly Options.
• 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 the hourly rate when calculating the Hourly Option amount.
• Include Credit Earnings: Select No as you have returned the credits via the 'Adjust Credits' program.
• Calculate VPay On VPay: Select No as this option is mainly used to determine a total pay out for 'what if' scenarios.
• VPay On Cheque Employees: Select No as you do not want any employees who receive their vacation pay on their cheques.

Press F9 or click Accept to start the report.

Review the report and, if all is well, proceed to the next step else you may have to return to the 'Adjust Credits' program or make further vacation journal adjustments as required.

After running a final YTD Vacation Pay Accrual Report and confirming all totals to be correct the next step is to go to Main Menu > Vacation Tab > Run the Cut-off VPay YTD Amounts module which will create journal entries for the vacation pay and allow for the creation of new vacation YTD records for the next vacation year's totals.

This report options should be set to the same options you set for your final Accrual Report.

Run the report first in trial mode with the Create Journals and Create New Vac Years Records options set to no. If the totals match your final accrual report then you can set the Create Journals and Create New Vac Years Records options to Yes.

If there are miscellaneous items, deductions, etc. that must be done prior to the cheque processing stage they should be entered as a regular journal entry. Go to Main Menu > Time Tab > Journal Entry module. Select the Vacation pay period and choose a sheet date for your journals separate from your main Vacation Cut Off journals already created. This will keep the journals on different dates and will be easier to view. This procedure would be necessary for any employees who have outstanding payments that must be cleared at the Annual Vacation Pay run such as loans, computer loans, purchases, or any other outstanding item.

After verification of the totals, return to the opening screen, enter the data required for creating journals, set the Create Journals and Create New Vac Years Records options to Yes and click the Accept button. This will create journal entries as required and new Vacation year-to-date records for all employees.

Go to Main Menu > Payroll Tab > Use the Create Batch Pay Cheques program to create the vacation pay cheques. Once the pay records are created carry on with the normal payroll procedures (i.e.; direct deposits, cheque register, etc...).

BATCH CHEQUE SCREEN SHOWING VACATION RUN SETTINGS

To print the Vacation Pay cheques and direct deposit slips, follow the regular printing routine as you do on a regular payroll run.. Go to Main Menu > Payroll Tab > Print Pay Cheques/Direct Deposits.