Setting up vacation time on the 5-2-1 Employees Compensation tab

Keep in mind the following:

• When processing payroll, the system increases accrued vacation time in the employee record based on the rate you have set up.
• When paying an employee for vacation time, use Pay Type 5 for vacation time on the timecard lines. When processing Payroll, the system decreases the vacation time in the employee record.
  • Accrued Vacation Hours. If this is a flat amount per year, enter amount available to each employee at beginning of each year and do not use an accrual rate.
  • Accrual Rate. Enter the rate at which vacation time accrues according to your company policy.
  • Accrual Method. Enter the method used to accrue vacation time, per hour or per period.
• Accrued vacation pay and accrued vacation time are independent of each other. Paying out accrued vacation as a lump sum does not reduce accrued vacation time on the employee record. Similarly, entering a timecard line using Pay Type 5 - Vacation does not reduce the balance of an employee's accrued vacation pay (Accrued Vacation Due in the employee record).