Some employees quit while in a negative accrual position. Some were incorrectly over accruing so did not receive a full vacation payout upon resigning and still have a positive balance. How can these be cleared from the e Vacation Summary, Accrual liability account and expense account?
Hey there ryan.murphy,
Thank you for giving me the opportunity to help you.
What is the accrual rate for these employees? If it's higher than 4%, then you'll have to create a payroll deduction item and used it when creating paycheques to correct the hours and amount.
Here's how to create a deduction item:
Next create a paycheque for the employee. Please follow these steps:
In regards to employees whose accruing negative hours, we'll have to double check their payroll setup. Since security of your account is our priority, I suggest you contact us. Our Payroll Support Team can look into your account and investigate this further.
You can find our updated phone number here:
If you're trying to correct or adjust your employee's vacation pay, check out this article: Set up vacation pay and accrual
Hi @Rochelley Appreciate this thread is old but had a question regarding your response.
I am curious if your advice to use Addition rather than Deduction is to be applied for both positive AND negative balances, or just negative?
Also, in our case we have a negative balance for a recently laid-off employee who had already used their vac max for the year. As they were willing to repay the debt to company thru a deduction on last paycheque, and balance thru EFT, how should we post these credits in order to reconcile (Payroll Expense?) account and zero out vacation accrual balance? Is this done thru a journal entry, or other way?
Realize it's likely 2 entries given one credit is from paycheque deduction, and other is from EFT into our bank.