- Employee has accumulated (earned) a Vacation Bank balance.
- Employee requests a paid vacation leave.
- Employer grants the paid vacation leave and the funding comes from the employee Vacation Bank.
- Employee goes on vacation and receives money from their Vacation Bank.
Paying out Vacation Pay
If you wish to use banked vacation pay for a paid leave:
- Set the days the employee wants off as unpaid leaves
- Calculate the amount of Vacation Pay the employee wants to use.
- Create a payment in the payments section of the employees profile using the Vacation Pay Template.
- Fill in the vacation payment amount.
- Fill in the payment due date.
- Fill in the name of the payment.
- Fill in the categorization date.
- Click on the “Create” button.
John has worked at Coffee Co. for 12 months. His contract specifies a 2 week vacation per year.
John request and receives approval for his two week vacation.
John takes his vacation and receives a deposit on payday that is the same as the others. That deposit was debited (withdrawn) from his Vacation Pay bank.