Harmony's payroll module includes a formula in the vacation accrual payroll category (#502) by default. This means that the default settings for vacation in Harmony is for your employees to accrue vacation at a percentage, and then is paid out in dollars when your employees take it. Follow the guide below for different vacation calculations. For your reference, the default formula looks like this:
Pre-
...
Requisites
- Know what payroll category codes your 'Vacation Pay' accrual payroll category and 'Vacation Paid' earning payroll category are. By default, the accrual is #502 and the earning is #105, but you may have changed this during your implementation.
- Understand how your vacation is calculated and paid out
Scenario #1: You accrue vacation by a percentage of gross earnings, and pay it out in dollars when
...
taken
This is the default setting for Harmony. However, if you have any additional earnings that contribute to vacation accruals, you will need to modify the accrual payroll category accordingly.
...
Remember to assign both the accrual and earning payroll categories to your employees! In the employee master paycard, you can enter the percentage in the "Amount" field.
Scenario #2: You pay out vacation every pay period as a percentage of gross
...
earnings
The process for this scenario is fairly simple. Since the formula in #502 is already set up as as percentage of gross earnings, all you need to do is replicate the formula into #105.
...
Remember to assign the earning payroll category to your employees! In the employee master paycard, you can enter the percentage in the "Amount" field.
Scenario #3: You accrue and pay out vacation in units (hours/days/etc.)
You will need to change the basis of both the accrual and earning payroll categories for vacation. By default, it is set up as a dollar/percentage.
...