Creating an accrued vacation paycheque

If your employees accrue vacation, you’ll need to write them vacation paycheques when they take holidays.

Note: You can only create a vacation paycheque if the employee has accrued vacation pay. This means you’ve either retained it on each of the employee’s regular paycheques or entered it under Setup, then Employees, under the Payroll menu.

To create vacation paycheques:

1. Select Create Paycheques from the Payroll menu.
2. Select Accrued vacation pay as your Type.
3. Enter the Pay period and Paycheque date. 
4. Select the employee you’re paying vacation to.
5. Click Create Paycheques. The Create Vacation Paycheque dialogue box appears.
6. Enter the Reference (generally the paycheque number) and the Amount of vacation pay.
7. Enter a memo (Memo) such as an expanded description or cheque information. This information will be printed on the memo line of your cheque.
8. Confirm that the deductions for the paycheque are correct.
   Note: If you’re paying vacation pay at the same time that you’re issuing a regular paycheque, you’ll need to re-calculate the CPP at 4.95 per cent of the gross vacation pay, without using an exemption.
9. Click Save. The paycheque displays on the Record tab. You can edit, delete or record it from here.

Last updated on June 30, 2014 by FCC AgExpert