Adding YTD Vacation Pay Balance

What are YTD Vacation Balances?

Vacation Pay balance is the total amount of vacation pay (in dollars) that a given employee has accrued either for the year or since they've been at the company minus the vacation pay they've used. This number ultimately represents the total Vacation pay liability the company owes for each employee.

What to Enter Here

If your employees are accruing Vacation Pay each period, you'll want to make sure you capture the total amount of accrued vacation and enter it into Humi Payroll before processing your first payroll. If your previous payroll provider has been tracking the Vacation pay balances for each employee, you should see the amounts listed on the paystubs.

If this is your first time tracking Vacation pay in money, you can determine this amount by following the steps outlined below:

  1. Determine how many vacation days the employee is entitled to over the course of the year and divide the number of days 250 (number of working days in a year adjusted to remove holidays). Alternatively, if you know the employee's accrual percentage you can skip the step.
  2. Determine the YTD vacationable earnings the employee has earned
  3. Multiply the accrual percentage by the YTD vacationable earnings
  4. Determine how many vacation days/hours the employee has used
  5. If you track your employee's vacation used in day, divide the employees compensation + vacationable earnings by 260 (the full number of work days in a year) to determine the employee's daily rate
  6. If you track your employee's vacation used in hours, divide, their compensation + vacationable earnings by 2080 (the number of hours worked in a year) to determine their hourly rate
  7. Multiply the number of days/hours used by the daily/hourly rate
  8. Subtract the total amount for Vacation used by the total vacation accrual
  9. Enter the amount in YTD Vacation Pay Balance