Calculate vacation on vacation paid

Sage 50 Accounting - Canadian Edition

Sage 50 Accounting - Canadian Edition
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Calculate vacation on vacation paid

  •  Could someone please explain what "calculate vacation on vacation paid" means.

    Thank you.

     

  •  It means exactly that -- whatever percentage of vacation pay is entered into the rate field will also be accrued when vacation pay is paid out. So if someone has accrued VP and some of all of it is paid out, then an additional calculation of x% will be newly accrued on the paid portion.

    Example: assuming 4% vacation pay and VP on VP:

    Wages 10 hrs @ $25 = $250 paid; This will accrue but not pay $10. vacation pay

    Time goes by and the employee has now accrued $x vacation pay. They take a day off and want some of their vacation pay:

    The employee wants $150 of their VP -- this will reduce the VP payable by $150 but also accrue another $6. VP.

     

  • Thank you MrsAlex  It sounds like double dipping to me.