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M
marlenad-coreres
October 30, 2024
Question

How do I set up two different vacation accrual rates for the same employee?

  • October 30, 2024
  • 1 reply
  • 0 views
We'd like to offer a more generous vacation package than the minimum required by Ontario employment standards. (3 or 4 weeks per year instead of the usual 2). Our employees are paid by salary plus commission and bonuses. How can we set up the salary to accrue at the more generous vacation pay rate (6% or 8%), while commissions and bonuses accrue at the ESA rate (4%)?

1 reply

J
JamesM4
October 30, 2024

Hi there, 

 

Welcome to the Community. I'll be happy to guide you in the right direction so you can continue to manage your payroll with ease.

 

Currently, there are four vacation accrual policies available in QuickBooks; Per hour worked, Each pay period, Beginning of year, and On anniversary date. It's important to note that these fixed policies have their own accrual percentages that adhere to the Canada Revenue Agency policies. To learn more about vacation accrual in QuickBooks, I recommend checking out this article here as it provides more info on this topic.  

 

Feel free to ask other questions in the comments below. I'll be a message away. 

M
marlenad-coreresAuthor
October 30, 2024

HI JamesM4,

Thanks for your answer. I have already read the page you linked. My question is not answered there. 

 To be more precise, let me give an example: Bob is an employee paid by salary plus commissions and bonuses. I'd like to offer Bob 3 weeks vacation instead of 2 weeks per year (the minimum required by Ontario employment standards). However, when I change Bob's vacation policy in QBO to grant him 120 hours per year in vacation, QBO automatically changes his vacation pay accrual rate to 6%. This automatically hands him a 2% bump on his commissions and bonuses, which is not my intent. What I'd like is for him to earn 6% vacation pay on his salary only. Since commissions and bonuses are also vacationable earnings, I'd like the vacation pay accrual rate on those earnings types to stay at 4%.

How can I apply a 6% vacation pay accrual rate to salary earnings, and 4% vacation pay accrual rate to commissions and bonuses earned by the same employee?

J
JamesM4
October 30, 2024

I'd like to make sure you get the support you need in a timely manner. I recommend getting in touch with our phone support team so they can share your screen and help get to the bottom of this ASAP . You can reach out by dialing 1-855-253-1536 from Monday to Friday between the hours of 9 AM and 8 PM EST. Feel free to keep me posted on how you make out.


 

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