Vacation Pay - Option for salaried employees

Salaried employees do not have the same variations in pay, therefore, you can choose to pay the salary during the employee's vacation time. In this case, the vacation accumulator is not active for the employee, and you track the employee's accumulated vacation time manually.

If you are paying a vacation using this method AND are paying the employee's vacation for a pay period other than the current one, you must make two or more salary override entries on the Employee Timesheet page. When a salary override is made, the regular salary entry is stopped.

Prerequisites

Use the procedure that follows when the situation meets all of the following criteria:

  • The employee is active.
  • The employee is salaried.
  • The employee's vacation time is not tracked with the vacation accumulator.
  • The employee is receiving vacation pay as time taken.
  • The employee may or may not have other current pay on this payroll run.
  • There is the possibility that the vacation time taken falls under more than one pay period.

Tasks

Pay vacation time for a salaried employee using salary overrides (accumulator is not used)

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Open the Employee Timesheet page.Closed From the Payroll menu, select Regular Payment > Employee Timesheet.
  3. Select the employee from the Employee List.
  4. From the Applicable Period of Time list, select a period of time that reflects the number of weeks this payout represents (current salary + vacation paid as salary). This allows the CPP/QPP exemption to be applied to all earnings plus the vacation pay (time taken).
  5. Enter the employee's salaried earnings:
    1. From the Earnings list, select Salary Override.
    2. Enter the dollar amount that represents the employee's salaried earnings.
    3. From the For which pay period? list, select the pay period for this payment (typically, the current pay period).

  6. Enter the employee's vacation pay:

    Note: With this method, the vacation pay is not requested as vacation pay because it does not come from the vacation accumulator. Instead, it is requested as a salary override.

  1. Enter the dollar amount that represents the employee's vacation pay.

  2. From the Earnings list, select Salary Override.

    If vacation time is in two or more pay periods, enter multiple salary overrides for each pay period in which vacation time is taken, and divide up the dollar amounts in proportion to the amount of vacation time taken in the different pay periods. This allows Powerpay to calculate the hour and dollar values that are insurable for EI purposes for each pay period.

  3. From the For which pay period? list, select the pay period for this payment.
  1. Click Save.