Hall of Fame/HallofFameCDROM.cdr/busi/payus31a.lzh/PAYUS31B.ZIP/VACATION.STX

Text File | 1990-03-05 | 6KB | 99 lines

Screenfile VACATION.SCN Screen# 01

In this section we will cover the steps involved in paying vacation pay. For
all employees, vacation pay is generated by entering vacation hours on the
above screen.  This applies to all hourly paid people, whether or not you are
using the vacation accrual feature, and also includes salaried people if you
are using the vacation accrual feature.  If you are not using the vacation
accrual feature then for salaried people you can either handle vacation by just
continuing to pay them their regular salary while they are away (no vacation
hours or other special treatment needed), or if advance payment is needed you
can enter their vacation time as vacation hours.  Vacation pay can be included
as an addition to regular pay in the same pay check (it will be shown as a
seperate item on the check stub or on the payslip).

Employees who have advance vacation pay would not of course continue to be paid
while they are away so AFTER the pay cycle which handles their vacation has
been made permanent change their Employee Status code to V for vacation and
leave it as V until they return to work.

If the vacation accrual feature has been activated (Vacation Percentage entered
on Basic Employee Info. Screen 2., see documentation file "EMPLOYEE UPDATE,
OVERVIEW, Printed Pages 03-05") and the whole of the accrued vacation is to be
paid then the vacation hours equivalent to the accrual plus the vacation on the
regular pay part of this current pay can be calculated automatically.  In this
case, do not enter any vacation hours.  Instead set "PAY ALL VACN. ACCRL." to
TRUE .  The above window will pop up to advise you what will happen.  Leave it
TRUE until after the vacation pay cycle has been made permanent then it can be
changed back to FALSE.

In some industries employment is of a temporary nature and the employee is not
expected to be around to take a vacation.  In those circumstances you may wish
to pay vacation pay as an addition to each pay check rather than letting it
accrue.  This is easily accomplished by setting "PAY ALL VACN. ACCRL." to TRUE
on the first pay and leaving it set true for each and every pay. (be sure
though that the Vacation Percentage is entered on Basic Employee Info. Screen
2.)

Screenfile VACATION.SCN Screen# 02

Vacation pay can be included with regular pay in one pay check, but you will
want to ensure the employee does not get hit with a huge tax deduction on the
increased pay.  We have provided a way to handle this. On the above screen is a
field "P.P.EXCEPTION" (Pay Period Exception) which is normally set to zero.  If
this is a special pay where the amount is not the pay for a normal pay period
then we can make an entry here and tax will be calculated on a daily basis.
The entry is the number of working days this pay is for, and the above window
will pop up to explain how it works.  In this case we have a person who is paid
every 2 weeks who is also taking 2 weeks vacation pay in the same check, so we
have entered 20 days in here (assuming 4 weeks at 5 working days each).

Note that "P.P.EXCEPTION" is not required for pays which are exceptional just
because they include an annual bonus.  In this case leave "P.P.EXCEPTION" set
to zero but ensure the bonus is entered on the Annual Bonus line of the next
screen where it will automatically receive the special tax treatment needed to
avoid overdeduction, even if it is included on the same check with a regular
pay.

Screenfile VACATION.SCN Screen# 03

On the above screen we have pressed F8 to get an on screen preview of what this
persons pay is going to look like.  We set PAY ALL VACN. ACCRL. = TRUE on an
earlier screen to illustrate its use, but then we decided to change it back to
false and enter vacation hours instead to illustrate another feature.  We gave
this person enough vacation hours to generate 2 weeks vacation pay, but in fact
she did not have enough vacation time accrued to pay for the 2 weeks so here we
are warned of that fact.  The program will not prevent you from doing that, it
just tells you about it. You may well intend to pay for vacation time that has
not yet been fully earned because this is a good employee who you know will
stay with you long enough after she returns from vacation to earn back that
extra time.

Screenfile VACATION.SCN Screen# 04

In this screen, F8 has been pressed so we can preview the pay check and in
particular note the VACATION ACCRUAL amount of -662.25 .  This will be added to
the YTD vacation accrual and because this is a negative amount it will reduce
YTD vacation accrual rather than increase it.  It can reduce the YTD to less
than zero leaving a negative YTD balance to be earned back or recovered on
termination. When an employee terminates you would normally pay out any accrued
vacation.  If the accrual feature is in use and you set PAY ALL VACN. ACCRL. =
TRUE on that termination pay then the calculation will produce an amount
sufficient to clear the YTD accrual back to zero.  If the YTD accrual is
already below zero (because the employee has had more vacation than has been
earned) then the vacation pay generated will be a negative amount and providing
the regular pay due on termination is high enough to offset it you will recover
any vacation balance due from the employee.

Note also in the above example the -662.25 accrual amount is not equal (in
absolute terms) to the vacation pay of 693.75 , the difference of 31.50 is the
amount of vacation pay that was due on the non vacation portion of this pay
check, 1481.18 total pay - 693.75 vacation = 787.43 regular pay x 4% = 31.50 .
If there were no vacation pay the VACATION ACCRUAL amount to be added to the
YTD would have been 31.50 (a positive amount). The vacation pay of 693.75 has
been subtracted from this to produce the -662.25 accrual adjustment.  These
sound like complex calculations, but they are all done for you automatically if
you are using the vacation accrual feature.