To pay Vacation leave in advance, enter the:
1. Vacation Leave $ amount.
OR
2. Vacation Leave $ amount PLUS Regular Earnings.
OR
3. Number of Cycles of Vacation Leave
In all of the above three (3) options, the tax (PAYE for Trinidad and Tobago) will be adjusted accordingly.
When the employee returns to work and he/she is made Active (P...PAY PROFILE...SC...STATUS CHANGE...A...ACTIVE) again, the payroll will revert to the employee’s Regular earnings and adjust the tax (PAYE for Trinidad and Tobago) accordingly.
To adjust the NIS and HS for an employee who is proceeding on Vacation Leave, enter a P...PAY PROFILE...NOM...NUMBER OF MONDAYS...C...CHANGE cycle change entry.
Ensure that the number of Mondays include the current cycle as well as the cycles for which the employee is proceeding on vacation leave.
How do I change the number of Mondays for NIS contributions?
POWERpay>>Process Payroll>>Cycle Changes
1. Set up an Earning Type for Vacation Leave (POWERpay>>Maintenance>>Payroll Setup>>Earnings>>Earning Types)
2. Ensure that the Earn Category for Vacation Leave is flagged as Pay.
To calculate the Vacation Leave pay: multiply the number of cycles for which the employee is proceeding on leave by the employee's cycle rate.
Example: 3 months vacation @ $8,000 per month
= 3 x $8000 = $24,000 TOTAL AMOUNT
To calculate Vacation Leave pay AND Regular pay: multiply the number of cycles for which the employee is proceeding on leave PLUS 1 (for the current cycle) by the employee's cycle rate.
Example: 3 months vacation @ $8,000 per month
= 3 +1 x $8000 = $32,000 TOTAL AMOUNT
Please remember to revert to the employee’s normal (regular) earnings when he/she is once again active on the payroll, by entering a T...TIMESHEETS...REG...REGULAR EARNINGS...T...TOTAL AMOUNT entry!
1. Enter a user-defined Earning code for Vacation Leave via: System Configurations>>Company Parameters>>System Constants>>Leave>>Default Earning Code (see screenshot below).
2. Use this code to enter a T...TIMESHEETS entry.
The payroll will use the value in the Amount field and multiply this by the employee’s cycle rate to get the employee’s Vacation Pay earnings.
If you wish the system to ALSO multiply up Deductions, Allowances, Other Income: check the respective boxes.
The payroll will multiply up all deductions, allowances and other income that are checked as REGULAR and process them accordingly.
When the employee returns to work and he/she is made Active again, the payroll will revert to the employee’s normal deductions, allowances and other income.