All Canadian employees are entitled to "Vacation Pay" and "Vacation Time." Although vacation pay and time are related, employers are required to track them independently, and the compliance requirements for each are different.
We know that some companies will choose to meet their vacation pay and vacation time requirements by implementing a single "Paid Vacation Time" policy that meets or exceeds the legal minimum for both.
If this is your business model, read on to learn how to disable "Vacation Pay" in Humi.
Important note
Before turning off "Vacation Pay," we strongly advise that you review your company's vacation policy to ensure that it meets or exceeds the requirements of your jurisdiction/industry.
To disable vacation pay in Humi, follow these two steps:
-
Hide the vacation pay balances from your employees' paystubs.
- Set your employees' "Vacation Pay Percentage" to 0% or leave it blank. This way, employees won't accrue any vacation pay in Humi.
Note
When you take these steps, vacation pay calculations continue to run in the background, but your employees will not see them.
1. Hide the vacation pay balances from your employees' paystubs.
Since your employees will not be accruing vacation, you can hide their vacation pay balances to avoid confusion on their paystubs.
- In "Payroll," click the "Settings" tab.
- In the "Paystubs" section, select "No" on the "Show vacation pay accruals in paystubs?" option. Learn more about "Payroll Settings" here.
Once completed, vacation pay accruals will not be displayed on your employees' paystubs.
2. Set your employees' "Vacation Pay Percentage" to 0% or leave it blank.
To prevent your employees from accruing any vacation pay in Humi, set their vacation pay percentage to 0% or simply leave the "Vacation Pay" field blank when configuring their compensation in Humi.
For a refresher on creating compensations in Humi, check out this step-by-step guide.