Most employees are seriously concerned about the procedure for calculating vacation pay, in order to know how much they can really expect when they go on vacation. In order to convey this information to employees, you can conduct personal conversations, which will help to avoid not only unnecessary questions, but also unexpected situations. Many employees are convinced that the calculation of such payments is not something difficult, however, accountants involved in these issues do not think so. Let's get it right.
The procedure for calculating vacation pay
Over the past few years, organizations have been drawing up special vacation schedules, which allows each employee to be warned of an upcoming vacation in two weeks, and the accountant has enough time to correctly calculate and charge the due payments. But there are also organizations where at the moment such schedules are not drawn up, in this case, the employee needs to issue a special application for the provision of leave, after which the accounting department will calculate the vacation allowance and issue it 3 days before it occurs. It is worth saying that the procedure for calculating vacation pay requires certain operations.
First of all, we are talking about the definition of the billing period, in which the last 12 months worked by the employee traditionally serve. If an employee started working in an organization less than a year ago, then the estimated period is the time that was actually worked out. To calculate the vacation allowance, it is required to sum the annual wage, and then divide the resulting number by 12, and the resulting quotient should be divided by another 29.4, that is, the number of calendar days in the month on average. When these manipulations are completed, the resulting figure will need to be multiplied by the number of days on vacation. Single one-time bonuses and material assistance in the calculation will not be taken into account.
At first glance, the procedure for calculating vacation pay seems quite understandable, but here you can encounter a number of very specific difficulties. Usually they are associated with such moments as the employees do not fully complete the required working days, which requires the accountant to verify the actual number of days worked in the reporting period, holidays should also be included in the calculation. The procedure for calculating vacation pay for an experienced accountant is commonplace, however, beginners should be as attentive as possible to this task, which will allow them to avoid potential conflicts with employees of the organization, as well as with representatives of various regulatory authorities, which will serve as a clear minus in the activities of accounting.
How is vacation paid?
In some situations, certain changes are made to the organizational working conditions that become the reason for the reduction in the number of company employees. In such cases, the employer has the right to maintain jobs, and for this purpose he may introduce a part-time regime. In this case, you need to know how the accrual and reflection of settlements with employees on the amounts paid as vacation pay is carried out, while it is important to understand that not a single day can be missed.
Determining the amount of vacation pay
The average wage for each employee is calculated by determining the average daily wage, and it can be calculated by the wage that was actually accrued in accordance with the time that was worked out. In this case, the period from the beginning to the end of each month is taken for a calendar month. The average daily earnings should be calculated for a period of 12 months, while holidays and sick leave should be excluded.
Now you know how to calculate the vacation, it remains to determine how all this is reflected in the postings. All mutual settlements with employees should be reflected on account 70 “Payroll accounting”.