Question
Does Jane Payroll calculate vacation pay automatically?
Answer
Yes. Jane calculates vacation pay based on the rate and time off policy option you choose, and applies it automatically during each payroll run.
How vacation pay is calculated and paid out depends on the option you've set up:
- Option 1 (Pay out every pay cheque): Jane calculates and pays out vacation pay automatically on every payroll run based on the rate you entered. No time off recording required.
- Option 2 (Accrue and carry a balance): Jane accrues vacation pay dollars as payroll runs and pays them out when you record vacation time during payroll.
- Option 3 (Paid Time Off): Jane tracks time off hours and pays staff for the hours recorded during payroll at their current pay rate.