Vacation and Sick Pay

[peterni]

I'm having a problem with vacation and sick pay. How does PayWindow handle those two accruals? I don't completely understand the Vacation Accrual screen. How can I change the total amount of vacation accrued? I tried fooling around with the accrual screen but I am baffled as to how these work. Help Please

1. How do I enter the beginning (01/01/08 ) accrual of vacation and sick? (This is the date I first started using PayWindow.)

2. How can I set accruals up so that the employee earns .92 sick hours every pay period reguardless of how many hours he/she works?

3. Even thought I went back to each pay period and edited the pay period (without changing the hours so the dollar amount and withholding stayed the same) the accrued vacation and sick didn't seem to adjust correctly.

4. How can I manually change the vacation and sick to adjust as of today (or the most recent pay period)?

5. How does PayWindow handle vacation and sick accrual when an employee received (as mine do) both hourly pay and commission based on their department's sales. Commission in my organization is a dollar amount but the accrual section of employee file states 'for this employee use ____ hours to represent a pay period'.

Thanks in advance for your help

[Paul Mayer]

PayWindow only accrues by hours worked and for salaried employees uses the normal period hors that you enter.

In PayWindow's help file search for the word "accrual" and select the topic title "Employees" to learn how the system works.

To enter time already accrued, see the Tutorial titled "How to Setup and Use Vacation and Sick Day Accruals in PayWindow" at http://zpay.com/help as well as more info on setting up the accruals.

[peterni]

It appears that vacation and sick pay accrues BOTH in hours worked AND dollar commission. I found that with one employee who worked 80 hours in a 2-week period AND received a commission on sales, he was awarded vacation and sick hours in excess of alloted hours, i.e. he was awarded sick/vacation hours on the commission.

I am also finding that even though I uncheck "Use overtime hours in Vacation accumulation as well", the program still awards excess vacation and sick for overtime hours

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What am I doing wrong? Employee receives 120 hours vacation, 24 hours sick per year. Normal pay is 80 hrs per 2 weeks. I enter 2080 as normal hours, uncheck overtime box. Salaried and commission should not apply and has 80 in blank. Employee should receive 4.62 vacation and .92 sick every pay period that she works 80 hours. So I run the payroll and she actually receives 4.898 vacation and .9339 sick.

Please advise

[Paul Mayer]

It appears that vacation and sick pay accrues BOTH in hours worked AND dollar commission. I found that with one employee who worked 80 hours in a 2-week period AND received a commission on sales, he was awarded vacation and sick hours in excess of allotted hours, i.e. he was awarded sick/vacation hours on the commission.

I am also finding that even though I uncheck "Use overtime hours in Vacation accumulation as well", the program still awards excess vacation and sick for overtime hours

Not so, I have no idea what you did but I used an empty database and ran tests. I also checked the code and we only calculate by hours.

But my tests were to run a normal payroll for an Hourly, Salaried and Commissioned employee. Each calculated .625 for sick and .78 for Vacation accruals.

Then I deleted the existing transactions and repeated the process but added $900,000.00 commission to each. The results were exactly the same as the first test.

What you need to do is to open the example company file, "paywin.dxi" and see how we have each of the example employees setup. That along with the help file and tutorial should get you setup properly.

[peterni]

Well, I was wrong when I thought that commission was used to figure vacat and sick hours. But I was right when the calculations for vacat and sick are incorrect. I will check your sample company, and report back if I don't find my error. Again, using my example of 120 vacat hours and 24 sick, I do not get proper accrual. (See my edited comment above.)

[Paul Mayer]

You also might be unaware that we "accrue" extra time for the time they will be away on vacation so they actually do accrue a total of 52 weeks or "2080" hours (which is normal 5 days a week) for a full year.

If they do not take a vacation and work through a full year, they then have a balance due.

However if you were to change that 2080 to 2120 as an example then accruing .7692 per 40 hours a week, that would give you exactly 40 hours for a week vacation but when we reverse the transaction, they end up with a week less accruals for the year. (2120 - 2080 = 40)

[peterni]

Thanks for the tips