Our company runs on a 35 hour work week, and pay based on annual salary. For Vacation Leave (and other paid time off, sick leave, flex leave etc.), it is calculated on hours per year rather than a percentage of wages earned.
So, for example, an employee who earns 4 weeks of vacation per year - their entitlement, based on the 35 hour week, is 140 hours per year). This does not change if the employee gets a raise.
In QBO, I have set up employees so they accrue their Vacation leave per pay-period. So the employee who is entitled to 140 hours per year, accrues 5.38 hours per pay period (we have a bi-weekly pay schedule).
HOWEVER, QBO requires a % based accrual. So when I set up the policy to accrue based on a rate of 140 hours per year, it automatically calculates the % based accrual at 7%. But when the math is done - 140 hours per year based on a 35 hour work week is not the same as 7%.
If my employee earns per annum of $50,000 per year (at 35 hours per week), this is the same as $27.47 per hour. Which means at 140 hours of vacation, their payout per year would be $3845.80. BUT, 7% of $50,000.00 is $3,500.00.
When I change the % based accrual to 7.69176% (it auto adjusts to 7.69%) (which would be $3,845.88 of $50,000.00), then it auto adjust the hours per year to 153.80 hours per year...
Help! I have the employee listed as working 7 hours per day 5 days per week. Is there another way to resolve?
