How To Calculate Vacation Pay

Table of contents:

How To Calculate Vacation Pay
How To Calculate Vacation Pay

Video: How To Calculate Vacation Pay

Video: How To Calculate Vacation Pay
Video: Lesson 5.4 Calculating Paid Vacation Days 2024, May
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It is very important for the employee to know how his salary is calculated, sick leave and vacation benefits are paid. To do this, you need to conduct personal conversations so that the employee does not have unnecessary questions and unexpected situations do not occur.

How to calculate vacation pay
How to calculate vacation pay

Instructions

Step 1

Calculating vacation pay is not a very difficult task, as all employees of the organization believe, with the exception of the accountant who performs this work.

Recently, organizations have been encouraged to draw up a vacation schedule, in such cases the employee is warned two weeks in advance of the next vacation, and the accountant has enough time to calculate vacation pay. But there are also such organizations where a vacation schedule is not drawn up, in which case a vacation application is written two weeks in advance and a vacation allowance is issued three days before the start of the vacation. In order to correctly calculate the vacation allowance, you need to perform the following steps:

It is necessary to determine the billing period. For the billing period, it is customary to take the last 12 months worked. If the employee got a job less than twelve months ago, then the calculated period is the actual time worked.

Step 2

It is imperative to determine the amount of vacation pay, for this, wages for twelve months are divided by twelve and by 29, 4, this is the average number of calendar days in a month. Then this value must be multiplied by the number of days on vacation. The calculation does not include a one-time bonus and material assistance.

Step 3

Difficulties usually arise when an employee has not fully worked out the working days in a month, therefore, first you need to determine the actual number of days worked in the billing period, and you need to pay attention to the fact that holidays are also included in the calculation.

Step 4

For an experienced accountant, accruing vacation pay is a common thing, but a beginner will have to do it very carefully, in case of an error, conflict situations may arise, both with the employee himself and with the auditing authorities, and this is a clear disadvantage in the work of an accountant.

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