Vacation Liability Plans and TRU Transfers

Wwhen an employee transfers from one tax reporting unit (TRU) to another TRU, and possibly a new vacation plan, the employee can have vacation liability balances across multiple TRUs and vacation plans.

To process a vacation payout of the liability for an employee who is transferred from one vacation plan and TRU to another, note these important points:

• If you leave the Vacation Accrual Reduction Date field in the Element Entries section of the element blank, the accrued vacation liability balances are reduced from all plans.

• If you enter a value in the Vacation Accrual Reduction Date field, the accrued vacation liability balance is reduced from the current vacation plan term in which the reduction date falls.

• If the Vacation Accrual Reduction Date is outside of the current plan dates, for example, the reduction date is not within the active plan, the vacation liability balance is reduced starting with the first vacation plan.

Multiple Assignments

To process a vacation payout of the liability for an employee with multiple assignments, each reporting to a different vacation liability plan and TRU, note these important points:

• If you leave the Vacation Accrual Reduction Date field blank, the vacation liability balance for all assignments and plans are reduced. The payout amount is processed and paid out in one assignment.
• If you enter a value in the Vacation Accrual Reduction Date field, the vacation liability balance for all assignments and plans are reduced based on the date in which the reduction date falls. The payout amount is processed and paid out in each assignment accordingly.

Note: To process the payout for multiple assignments, you must assign the payout element to each assignment using the Element Entries task.

Recording Absences for TRU Transfers

Employee vacation absences reduce the vacation liability balances. Consider Note these points for reducing accrued vacation liability balances for employees who transfer from one vacation plan and TRU to another:

• If you leave the Vacation Accrual Reduction Date field in the Element Entries section of the element blank, the accrued vacation liability balance is reduced starting from the earliest vacation plan to the most current plan.
• If you enter a value in the Vacation Accrual Reduction Date field, the accrued vacation liability balance is reduced from the current vacation plan term in which the reduction date falls.
• If the Vacation Accrual Reduction Date is outside of the current plan dates, for example, the reduction date isn’t within the active plan, the vacation liability balance is reduced starting with the first vacation plan.