It is important for the employee to know about how payroll, sick leave, and also how vacation pay is calculated. That is why it is worth conducting personal conversations, which will eliminate unnecessary questions and conflict situations. Most employees think that it is not so difficult to accrue vacation pay, but the accountant who is doing this does not seem so. It is worthwhile to deal with this issue.
How vacation pay is accrued
Recently, organizations have been encouraged to draw up a special vacation schedule. In this case, the employee will be warned about his next vacation in two weeks, and the accountant will have enough time to calculate and accrue vacation pay. However, there are organizations in which a vacation schedule is not compiled. In this case, two weeks before the next vacation, the employee writes a standard application for its provision, and 3 days before the start of the vacation he is issued vacation allowance. Understanding the question of how vacation pay is accrued, certain actions should be performed.
First you need to determine the billing period - usually the last 12 months worked are taken for it. If the employee got a job in the organization less than 12 months ago, it is customary to take the time that was actually worked out in terms of the billing period. The amount of vacation allowance must be determined without fail. For this, it is necessary to divide the amount of wages for the year by 12, and then by 29.4, that is, the average number of calendar days in a month. After these manipulations, the obtained value must be multiplied by the number of days on vacation. The calculation does not take into account material assistance and a one-time bonus.
At first glance, it seems understandable how vacation pay is accrued, but there are many difficulties. They are usually associated with the fact that the employee did not fully work the working days, so it is best to determine the actual number of days that were worked out in the reporting period. It is important to understand that holidays are also included in the calculation. Accrual of vacation time for an experienced accountant is a common thing, but a beginner should do this as carefully as possible, because in the event of an error, various conflict situations can arise with employees, as well as with regulatory authorities, which is a clear minus in the work of an accountant.
Holiday accrual rules
There are situations when certain changes are made to the organizational working conditions, which causes a reduction in the number of employees. In such cases, the employer has the right to introduce a special working time regime, that is, part -time, in order to preserve jobs. How to accrue and reflect in the accounting documents mutual settlements with employees on vacation amounts, given that it is impossible to exclude a single day?
You must use the average daily earnings, which is determined by the accrued actual wages in accordance with the hours worked. The calendar month is considered to be the period 1-30 (31st) day of each month. Calculation of average daily earnings is carried out for a period of 12 months, while sick leave and holidays should be excluded.
Payout Reflection
The amount of vacation pay is usually attributed to the costs of standard activities. Information on such settlements with the employee is reflected in special account 70 “Payroll accounting”. In this situation, the accounting department of the enterprise, according to the accounting policy, includes vacation pay in the calculation of the current period in the month that the vacation time falls on.
Now you can navigate the question of how vacation pay is calculated, which will allow you to independently determine the approximate amount of your vacation allowance.