Transfer accrual from vacation to additional accumulator

Many companies have two vacation banks (VA and WA).

• VA, or the vacation accumulator, represents vacation that is being accumulated for the current year; and
• WA, or the additional accumulator, represents vacation that was accumulated for the previous year(s).

A legislative ruling, collective agreement or company policy will determine the date when and if the transfer of the accrual from one accumulator to another should occur.

Before the accrual balances are transferred, complete the following steps.

1. Open the regular run to which the transfer should apply. (This feature is not available on any other run type.)

2. Contact your Service Delivery Team to program the instructions to transfer values from the vacation accumulator to the additional accumulator.

3. Enter your current payroll data.

4. Review your vacation pay entries.

   In Powerpay, the transfer of the accrual amount occurs prior to vacation time entries being reduced from the accrual in the pay period the request is made. This may result in payment errors or negative balances. See Review your vacation pay entries.

5. Once your review and corrections are complete, submit your payroll for processing.

Tasks

Review your vacation pay entries

If your payroll is set up to allow negative accrual balances, any vacation time recorded in the pay period, when the transfer occurs, will be paid however a negative vacation accrual balance will result. An adjustment is required to remove the negative balance.

If your payroll does not allow negative values in the vacation accrual balance, payment errors may occur.

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

2. Request a preview of your payroll on the Payroll Preview page. From the Process menu, select Payroll Preview.

3. Confirm if vacation payments are included in the Grand Totals section on the Data Verification page. From the Process menu, select Data Verification.

   If no vacation payments were made, no further action is required. Submit payroll when ready.

   If vacation payments were made, identify the employees with vacation time.

4. Go the Audit Trail page. Click the Pay Period menu, select View.

5. With the Audit Trail open, click Ctrl + F and enter “vacation” in the search box. Vacation pay entries will be highlighted.

6. Notate the employees found with vacation pay in the current pay period.

7. Determine what adjustments are required.

   Your payroll allows negative balances:

   If you do not want a negative accrual amount displaying in the Vacation Accumulator balance, enter an accrual adjustment.

   1. Go to the Payroll Preview page. From the Process menu, select Payroll Preview.

   2. Click the Employee Totals button to open the Employee Totals page.

   3. Click the employee’s name to open the Employee details page.

   4. Notate the current earnings for vacation pay paid.

   5. On the Accumulators page. From the Payroll menu, select Adjustments > Accumulators., enter the value of the vacation pay to be paid as a positive value in the Vacation Pay Accumulator and enter a negative value for the same amount in the Additional Accumulator.

      Tip: This will remove the negative accrual value generated by the accrual transfer request and reduce the additional accrual for the vacation pay paid.

   6. Repeat these steps for all employees with vacation pay paid.

   Your payroll does not allow negative balances:

   1. Go to the Payroll Preview page. From the Process menu, select Payroll Preview.

   2. Click the Employee Totals button to open the Employee Totals page.

   3. Click the employee’s name to open the Employee details page.

   4. Review the current earning and hours in the Hours and Earnings section to confirm the amount the employee will be paid for the vacation time.

   5. Calculate any difference to pay the employee the correct vacation pay amount.

      Tip!

      • A vacation time entry will display in Preview however if a negative accrual balance is detected, the employee will not be paid correctly.

      • If the employee has earnings in the pay period and the accumulator is set to accrue on those earnings, the vacation timesheet entry will only pay up to the amount accrued in that pay period.

   6. On the Accumulators page. From the Payroll menu, select Adjustments > Accumulators., enter an accumulator adjustment for both the Vacation Accumulator and Additional Accumulator for the value calculated in the previous step. Enter a positive value for the Vacation Pay Accumulator and enter a negative value for the same amount to the Additional Accumulator.

   7. Repeat these steps for all employees with vacation pay.

8. Run a preview again to confirm your adjustments.