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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-

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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

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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. 

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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

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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. 

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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. 

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