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- In the Calculation of Accumulated Vacation Pay documents, review the "Accumulate Vacation Pay" attribute for each employee. This attribute is automatically selected if it is marked in the Employment Contract document.
- The calculation of Vacation Pay is also linked to the employee's length of service.
In the Vacation Type settings, the Employment Length in months should be specified. This means that the system will not calculate any amounts for the employee during the first five months of their employment. The first calculation will be included in the Month-End Closing document for the 6th month of employment.
- Basis for Calculation:
You need to verify the Basis for calculating Vacation Pay.
Check this directly in the Vacation Document under the Basis Accruals tab. The accruals listed here should match those specified in the Employment Contract. Only with this alignment can the system accurately calculate the vacation pay amount.
- Additionally, keep in mind the following payroll logic: If an employee is terminated and then rehired, it’s crucial for accurate calculations—including correct accruals and vacation days—to handle their records properly.
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