Understanding vacation pay calculation timing
Last updated: June 3, 2026
You can control how vacation pay is calculated by choosing which date determines when it’s included in a pay run. This ensures vacation pay aligns with your business’s preferred payroll and accounting process.
This setting only affects when vacation pay is triggered in the pay run, not how it accrues.
Where to find the setting
Go to Business Settings
Click the Vacation Pay tab
Locate the ellipsis menu (...), to access the Vacation Pay Calculation Timing section. This section includes a Calculation Date dropdown
Calculation date options
Choose from the following options in the dropdown:
Option | Description | Recommended for... |
Pay Date (default) | Vacation pay is included based on the date employees are paid | Tracking payouts based on cash flow (when money leaves the business) |
Period Start | Vacation pay is based on the first day of the pay period | Accruing vacation from the beginning of the work cycle |
Period End | Vacation pay is calculated using the last day of the pay period | Aligning vacation pay with the end of a worked period |
Save your selection
Once you've chosen your preferred option, click Save to apply the setting. Future pay runs will use this timing to determine when vacation pay is included.