Vacation Pay - Terminating employee, NO time taken

Typically, when an employee is terminated, the company pays out the vacation accumulator as a lump sum, which is insurable for dollars only in the pay period of the last day worked.

Prerequisites

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

  • The employee is in the process of being terminated on this payroll run.
  • The employee has requested a Record of Employment.
  • The employee is receiving the entire accumulated vacation pay as No time taken.
  • The employee may or may not have other current pay on this payroll run. (The last day worked may be in a previous pay period even if the ROE is issued in this pay period.) You may be terminating this employee on an extra run.
  • There are NO error corrections to be made such as having terminated the employee in the previous payroll without paying out the employee's vacation accumulator (the need to correct the ROE).

Tasks

To pay out the vacation accumulator as NO time taken when the employee is terminating:

  1. Open the Employee Timesheet page.Closed From the Payroll menu, select Regular Payment > Employee Timesheet.
  2. Select the employee from the Employee List.

  3. Enter all hours and earnings including salary overrides and permanent earnings overrides, if any. If the employee is not to be paid any salary or permanent earnings, enter $0.00 as the override values.

  4. From the Applicable Period of Time list, select an period of time that represents the number of weeks of current earnings. If there are no current earnings, select No time taken: Extra payment.

    The Applicable Period of Time controls the application of the CPP/QPP exemption. Because this vacation payout is NO time taken, the Applicable Period of Time applies only to current earnings, if any.

    Note: To view the employee's regular permanent earnings, open the Permanent Rates, Factors, Earnings page.Closed From the Payroll menu, select Regular Payment > Permanent Rates, Factors, Earnings.

  5. To request the payout of the Vacation Accumulator, complete the following steps:

    1. Select Yes - No Time Taken from the Pay out entire accumulator? list.

    2. Select the pay period for the employee's last day worked from the For which pay period? list.

  6. Click Save.

  7. To terminate the employee with the appropriate option, complete the following steps:

    1. Open the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE.

    2. Select the employee from the Employee List.

    3. Select the appropriate termination option from the list, and then click Go.

      Note: Because you are paying out the vacation accumulator, you must select an appropriate option that also allows the processing of current pay (regardless of whether there are any other current earnings). For more information, see Status Change Options.

  8. Complete the Status Change page.
  9. Click Save.