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Yogasomewhere
April 30, 2021
Question

Calculate vacation pay for an employee that has resigned and they had two different wages

  • April 30, 2021
  • 1 reply
  • 0 views

I have an employee that has resigned and I need to calculate their vacation pay. They are on salary, and if I understand correctly I will have to change them to hourly.
However, what do I do if part of their term was at one wage and they received a wage increase for the latter part?
I can manually calculate everything however I legally need it to show up on their final paystub.

I could really use some help as TODAY is the payroll cut off and need to put it into QuickBooks correctly.

Thank you!

1 reply

A
Alex M
April 30, 2021

Hi there Yogasomewhere,

 

Making sure that your pay is accurate is an important part of running your business. QuickBooks Online Payroll is a great tool to help you keep track of amounts deducted from pay in order to make remitting to the government easier. I can provide some assistance with that.

 

QuickBooks Online can only calculate vacation pay based on one rate of pay. In order to make sure the pay and hours are accurate due to the two different pay rates, you could calculate the amount owed in total, and divide it by the number of hours of vacation needing to be paid out to the employee in order to get the average rate for the total vacation pay as well as hours to be showing up correctly on the pay stubs. Enter the rate as the employee's rate of pay, then when running the pay you can enter the number of hours in the box for vacation pay. I recommend running this by your accountant as well, as they'll be able to tell if the amount you're paying them is correct since this does involve two vacation rates for those two periods.

 

If you have any other questions, feel free to reach out here.

 

 

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