Set or edit the vacation policy for an employee
How to determine the vacation accrual rate
Set or edit the vacation policy for an employee
When you add a new employee, you need to set a vacation policy, accrual rate (if applicable), and an effective date before you can save the profile. You can edit this anytime by following the steps below:
- On the left-side menu, click Payroll > Employees.
- Click on the name of the employee.
- Click the Vacation tab on the left, then select Change Vacation Policy.
- In the Vacation policy type dropdown menu, select from the list to either accrue vacation time, not offer vacation time, or, for hourly employees in certain provinces, pay out vacation time.
Accrued vacation time is paid out automatically if you offboard an employee.
- If you choose to accrue vacation time for the employee, in the Vacation accrual rate field, set the rate. For more information on determining the accrual rate, see the section below.
- Edit the effective date if required.
- Click Save.
How to determine the vacation accrual rate
- If you want to provide 2 weeks of vacation in a year, set the vacation accrual rate as 4.0%
- If you want to provide 3 weeks of vacation in a year, set the vacation accrual rate as 6.0%
- If you want to provide 4 weeks of vacation in a year, set the vacation accrual rate as 8.0%
If your business is in Canada, you can also use the vacation calculator provided on the government website to determine vacation entitlements for your employees.
Make sure the vacation policy you set meets any requirements your business is subject to. To learn more, if you are in the US, see vacation guidelines in United States, and if you are in Canada, see [Canada] Federal and provincial vacation guidelines.
Entering vacation time taken
Vacation hours taken by your employee should be recorded in the Timesheets section. To learn how to record this, see How to record and pay overtime or vacation hours to an employee.