How to Manage Vacation Pay and Accrual Adjustments

This article explains how to manage employee vacation balances using the Vacation Pay tab within the employee profile. It outlines how to view vacation balance details, configure vacation pay settings, and apply accrual adjustments when needed.

You will learn how vacation amounts are calculated, how to set accrual or payout preferences, and how to make balance corrections that reflect in upcoming payroll runs without impacting actual payouts.

Access Vacation Balance Information

Vacation balance management is available within the employee profile under the Vacation Pay tab. The Vacation Pay tab displays a summary of the employee’s vacation figures, including:

• Opening balance ($)

• Vacation accrued ($)

• Vacation paid out ($)

• Remaining balance ($)

These balances are calculated using completed payroll runs and the current upcoming payroll.

Administrators can also filter vacation balance data using the available date range filters:

• All Time

• Custom

This allows more targeted vacation balance reporting and review.

Configure Vacation Pay

The Vacation Pay section allows payroll administrators to configure how vacation pay is managed for an employee.

Two configuration methods are available:

• Accrue per period
  Vacation pay accumulates over time based on payroll processing.

• Payout per period
  Vacation pay is paid out on each payroll.

Steps to Configure Vacation Pay On An Individual Employee Profile

1. Open the employee profile to be updated.

2. Navigate to the Vacation Pay tab.

3. Select + Create Vacation Pay.

4. Choose the configuration method:

   • Accrue per period

   • Payout per period

5. Enter the Effective From date.

6. Optionally, enter an Effective To date if the configuration should apply only for a defined period.

7. Enter the vacation pay percentage.

8. Click Create to save the configuration.

After saving, the vacation pay configuration will automatically apply to future payroll calculations within the selected effective date range.

Steps to Configure Vacation Pay in Bulk (Coming Soon)

Step 1: Vacation Pay

1. Navigate to Business Settings > Payroll Items

2. From the Payroll Items page, click + Add Vacation Pay

Step 2: Select Employees

Select the employees who should be configured vacation pay

Available selection options include:

• Selecting employees individually

• Using the search bar to locate employees by name

• Using the header checkbox to select all employees

The employee list also displays each employee’s assigned pay schedule.

After completing employee selections, click Continue to editor.

Step 3: Configure Vacation Pay Details

Enter the vacation pay details for each selected employee.

This includes:

• Vacation Pay Method

• Percentage

• Effective To

• Effective From (optional)

• Notes (optional)

Bulk actions are available within editable fields to simplify updates:

• Apply to all
  Copies the entered value to all selected employees

• Reset all
  Clears values for all employees within that field

• Reset this cell
  Clears the value for an individual employee field

Review all payroll item information carefully before saving changes.

Step 4: Save Changes

1. Click Save Changes

2. The vacation pay assignment will be applied to all selected employees

Apply Vacation Accrual Adjustments

The Vacation Pay tab on the Employee Profile also supports manual vacation accrual adjustments.

This functionality is commonly used when:

• Historical vacation balances were not included during implementation or import

• Manual balance corrections are required

• Vacation accrual balances need to be updated without issuing a payout

Adjustments can be entered as either:

• A positive amount to increase the balance

• A negative amount to decrease the balance

Accrual adjustments only modify the tracked vacation balance. They do not generate a payment or movement of funds.

Applied adjustments will be processed in the next available payroll run.

Steps to Adjust Vacation Accruals

1. Open the employee profile to be updated.

2. Navigate to the Vacation Pay tab.

3. Select + Adjust Accrual.

4. Enter a title for the adjustment.

   • The title will appear as a separate line item on the employee paystub.

5. Enter the adjustment amount:

   • Positive amount to increase the balance

   • Negative amount to decrease the balance

6. Click Create to save the adjustment.

Once created, the adjustment will update the employee’s vacation balance and appear in the next payroll run.

Access Vacation Balance Information

Vacation balance management is available within the employee profile under the Vacation Pay tab. The Vacation Pay tab displays a summary of the employee’s vacation figures, including:

• Opening balance ($)

• Vacation accrued ($)

• Vacation paid out ($)

• Remaining balance ($)

These balances are calculated using completed payroll runs and the current upcoming payroll.

Administrators can also filter vacation balance data using the available date range filters:

• All Time

• Custom

This allows more targeted vacation balance reporting and review.

Configure Vacation Pay

The Vacation Pay section allows payroll administrators to configure how vacation pay is managed for an employee.

Two configuration methods are available:

• Accrue per period
  Vacation pay accumulates over time based on payroll processing.

• Payout per period
  Vacation pay is paid out on each payroll.

Steps to Configure Vacation Pay On An Individual Employee Profile

1. Open the employee profile to be updated.

2. Navigate to the Vacation Pay tab.

3. Select + Create Vacation Pay.

4. Choose the configuration method:

   • Accrue per period

   • Payout per period

5. Enter the Effective From date.

6. Optionally, enter an Effective To date if the configuration should apply only for a defined period.

7. Enter the vacation pay percentage.

8. Click Create to save the configuration.

After saving, the vacation pay configuration will automatically apply to future payroll calculations within the selected effective date range.

Steps to Configure Vacation Pay in Bulk (Coming Soon)

Step 1: Vacation Pay

1. Navigate to Business Settings > Payroll Items

2. From the Payroll Items page, click + Add Vacation Pay

Step 2: Select Employees

Select the employees who should be configured vacation pay

Available selection options include:

• Selecting employees individually

• Using the search bar to locate employees by name

• Using the header checkbox to select all employees

The employee list also displays each employee’s assigned pay schedule.

After completing employee selections, click Continue to editor.

Step 3: Configure Vacation Pay Details

Enter the vacation pay details for each selected employee.

This includes:

• Vacation Pay Method

• Percentage

• Effective To

• Effective From (optional)

• Notes (optional)

Bulk actions are available within editable fields to simplify updates:

• Apply to all
  Copies the entered value to all selected employees

• Reset all
  Clears values for all employees within that field

• Reset this cell
  Clears the value for an individual employee field

Review all payroll item information carefully before saving changes.

Step 4: Save Changes

1. Click Save Changes

2. The vacation pay assignment will be applied to all selected employees

Apply Vacation Accrual Adjustments

The Vacation Pay tab on the Employee Profile also supports manual vacation accrual adjustments.

This functionality is commonly used when:

• Historical vacation balances were not included during implementation or import

• Manual balance corrections are required

• Vacation accrual balances need to be updated without issuing a payout

Adjustments can be entered as either:

• A positive amount to increase the balance

• A negative amount to decrease the balance

Accrual adjustments only modify the tracked vacation balance. They do not generate a payment or movement of funds.

Applied adjustments will be processed in the next available payroll run.

Steps to Adjust Vacation Accruals

1. Open the employee profile to be updated.

2. Navigate to the Vacation Pay tab.

3. Select + Adjust Accrual.

4. Enter a title for the adjustment.

   • The title will appear as a separate line item on the employee paystub.

5. Enter the adjustment amount:

   • Positive amount to increase the balance

   • Negative amount to decrease the balance

6. Click Create to save the adjustment.

Once created, the adjustment will update the employee’s vacation balance and appear in the next payroll run.

Key Details or Requirements

• Vacation balances are calculated using completed payroll runs and the current upcoming payroll

• Vacation configurations apply automatically to future payroll calculations

• Effective date ranges may be impacted by organization-level vacation pay settings

• Accrual adjustments affect balance tracking only and do not create payouts

• Adjustment entries appear as separate line items on employee paystubs

Important Considerations

Best Practices

• Review effective dates carefully before saving configurations

• Confirm vacation percentages align with organizational policies

• Use accrual adjustments only for balance corrections or historical updates

• Verify payroll results after applying vacation balance changes

• Maintain records of manual vacation balance adjustments for audit purposes

Summary

The Vacation Pay tab provides centralized management of employee vacation balances, vacation pay configurations, and accrual adjustments. This functionality helps maintain accurate vacation tracking while ensuring future payroll calculations reflect the appropriate vacation settings and balance corrections.