Pay Out Vacation Pay

Before you can perform this task

If required, set up Sage Simply Accounting to automatically calculate vacation accrued on the amount of vacation paid.

There are two ways to pay out vacation pay:

To automatically pay out vacation pay on each paycheque

You only need to set this up once when you pay an employee for the first time.

  1. Open the Income tab in the employee record. How?
      1. In the Home window, click Employees & Payroll on the navigation pane.
      2. In the Tasks pane, right-click the Employees icon and select Modify Employee from the menu.
      3. Select an employee from the list and click OK.
      4. Click the Income tab.
  2. Clear the Retain Vacation box.
  3. In the Vacation Rate box, enter the employee's vacation pay rate.
  4. Click Save and Close.

Note: Each paycheque for this employee will now automatically include vacation pay.

To pay out some or all of the retained vacation pay

Before you can pay out an employee's retained vacation pay, you need to set up Sage Simply Accounting to retain vacation pay.

To pay out retained vacation pay when processing a single paycheque

  1. Open the Paycheques window. How?
      1. In the Home window, click Employees & Payroll on the navigation pane.
      2. In the Tasks pane, right-click the Paycheques icon and select Create Paycheque from the menu.
  2. From the list in the Employee box, select an employee and press the Tab key.
  3. On the Income tab, type the amount of vacation you want to pay out in the This Period column of the Vac. Paid row.

    4. Note: The Vac. Accrued row shows the vacation pay accrued for this period in the This Period column and the total vacation pay owed to the employee in the Year to Date column. The Year to Date column of the Vac. Paid row shows the total amount of vacation an employee has been paid in the calendar year.

  4. Click Process.

To pay out retained vacation pay when processing a payroll run

  1. Open the Payroll Cheque Run window. How?
      1. In the Home window, click Employees & Payroll on the navigation pane.
      2. In the Tasks pane, click the Payroll Cheque Run icon.
  2. In the column, select the employees you want to include in this payroll run.
  3. Fill in the payroll information.
  4. For each employee you want to pay out:
  1. Click to highlight the employee's name in the list to see more details about their paycheque.
  2. In the Cheque Details section, on the Income tab, type the amount of vacation you want to pay out in the Vac. Paid row under the This Period column.

    3. Note: The Vac. Accrued row shows the vacation pay accrued for this period in the This Period column and the total vacation pay owed to the employee in the Year To Date column. The Year To Date column of the Vac. Paid row shows the total amount of vacation an employee has been paid in the calendar year.

  1. Click Process.

What do you want to do?

Calculate accrued vacation pay

Retain vacation pay