Pay Out Vacation Pay
Before you can perform this task
If you retain vacation pay, you must set up Sage 50 Accounting to retain vacation pay before you can pay out any retained vacation pay.
If required by your provincial employment standards, set up Sage 50 Accounting to automatically calculate vacation accrued on the amount of vacation paid.
There are two ways to pay out vacation pay:
To automatically pay out vacation pay on each paycheque
You only need to set this up once when you pay an employee for the first time.
- Open the Income tab in the employee record. How?
- In the Home window, click Employees & Payroll on the navigation pane.
- In the Tasks pane, right-click the Employees icon and select Modify Employee from the menu.
- Select an employee from the list and click OK.
- Click the Income tab.
- Clear the Retain Vacation box.
- In the Vacation Rate box, enter the employee's vacation pay rate.
- Click Save and Close.
Note: Each paycheque for this employee will now automatically include vacation pay.
To pay out some or all of the retained vacation pay
To pay out retained
vacation pay when processing a single paycheque
- Open the Paycheques window. How?
- In the Home window, click Employees & Payroll on the navigation pane.
- In the Tasks pane, right-click the Paycheques icon and select Create Paycheque from the menu.
- From the list in the Employee box, select an employee and press the Tab key.
- On the Vacation tab, type the number of vacation hours that you want to pay out in the Vacation Paid row and/or its corresponding amount.
If you do not enter any hours, insurable hours will not be recorded for the vacation taken. The number of insurable hours are required to establish entitlement to Employment Insurance (EI) benefits. The employment must be insurable in order to earn insurable hours. - Click Process.
To pay out retained
vacation pay when processing a payroll run
- Open the Payroll Cheque Run window. How?
- In the Home window, click Employees & Payroll on the navigation pane.
- In the Tasks pane, click the Payroll Cheque Run icon.
- In the
column, select the employees you want to include in this
payroll run. - Fill in the payroll information.
- For each employee you want to pay out:
- Click to highlight the employee's name in the list to see more details about their paycheque.
- In the Cheque Details section, on the Vacation tab, type the number of vacation hours that you want to pay out in the
Vacation Paid row and/or its corresponding amount.
If you do not enter any hours, insurable hours will not be recorded for the vacation taken. The number of insurable hours are required to establish entitlement to Employment Insurance (EI) benefits. The employment must be insurable in order to earn insurable hours. - Click Process.