Configure a Custom Vacation Pay Rate

Overview

The Custom Vacation Pay Rate feature allows you to configure an employee-specific rate for paying vacation time when the employee’s regular rate of pay is not appropriate.

This provides additional flexibility for employees with non-standard compensation arrangements or when the employee’s vacation dollar balance and available vacation hours require a custom payout rate.

Common Use Cases

• Commission or non-standard employees: Workers who accrue vacation dollars but do not have an established standard hourly pay rate.

• Balance-to-hours alignment: Aligning vacation dollars with available vacation hours when the accumulated dollar balance exceeds what would be paid out using their regular base rate.

• Higher vacation accrual rates: Paying vacation at an elevated rate when accumulated vacation dollars support a rate greater than their standard hourly rate.

• Special arrangements: Other employee-specific agreements where the regular pay rate does not reflect the rate intended for vacation time taken.

Formula Example:

Rate Calculation Formula

Available Vacation Dollars ÷ Available Vacation Hours = Custom Rate

Example: $3,000 ÷ 100 hours = $30.00 / hr Custom Rate

 

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Important: Legislative Compliance

Employers are responsible for determining the appropriate vacation pay rate in accordance with applicable provincial or territorial employment standards legislation and internal organizational policies.

Prerequisites

Before configuring a custom rate, ensure you have:

1. Determined the specific custom hourly rate that applies to the employee.

2. Established the Effective Date for when the new rate takes effect.

3. Confirmed that the employee's Vacation Pay Type is set to use a custom rate.

Configuration Procedure

1.Assign the Custom Vacation Pay Rate Type:

1. Navigate to the employee profile.
2. Select the Leave Info tab.
3. Under Vacation Pay Type, select Custom Vacation Pay Rate.
4. Save the employee record.

2.Open Custom Rate Subtab:

1. From the updated employee profile, navigate to the CA Vacation Pay Custom Rate subtab.
2. Click New CA Vacation Pay Custom Rate.

3.Enter and Save Custom Rate Details:

1. In the modal window, enter the Effective Date for the rate.
2. Enter the calculated Custom Rate amount.
3. Select Save.

Post-Configuration Review

• Return to the CA Vacation Pay Custom Rate subtab and verify that both the rate and effective date display correctly.

• Effective Dating: When an employee’s vacation pay rate needs to change in the future, create a new effective-dated custom rate record rather than overwriting historical rate entries.