Vacation Liability Reporting

Report the relevant balances generated in the payroll run for vacation liability.

The relevant balances generated in the payroll run for vacation liability are:

• Vacationable Earnings are earnings that are subject to the vacation liability calculations and are determined by the wage basis rules for earnings and absence elements.
• Vacation Liability is calculated by applying the rate to the vacationable earnings (Vacation Liability = Vacationable Earnings * Percentage). This balance is reduced by vacation absence earnings and payments made by the vacation payout. This balance may be costed and is calculated in retroactive processing. Balance adjustments may also be made to this balance.
• Unprocessed Vacationable Earnings are total earnings subject to the vacation liability calculation according to the wage basis rules but are not included in the calculation. This can occur when there is no active vacation plan on the employee’s tax card.
• Vacation Payout are earnings amount paid to the employee from the accrued vacation liability. The values paid in the payout element don't contribute to vacation liability and instead, reduces the liability balance. You can set up tax processing for the payout element similar to other earnings elements.

Vacation Liability and Vacationable Earnings run results are populated with a reference code to designate the vacation plan and term as shown here:

• VA_<Absence Plan Name>_YYYY_<AbsencePlanId>

  YYYY refers to the vacation term year for which the vacation liability is processed. The plan term reference year is based on the process or pay date. Employers may accrue liability in one year and allow employees to take vacation in the following year. Alternatively, they may accrue and allow vacation to be taken in the current year.

Unprocessed vacationable earnings are populated with a reference code of VA_UNDEFINED.

Note: If there is a mismatch between the Absence Plan enrollment and the Vacation Liability plan on the tax card, and payrolls are processed after a termination, the run results for Vacation Liability and Vacation Payout are populated with a reference code of VA_UNDEFINED.

Include Vacation Liability Balances in Reports

The balance is generated in the payroll run and the vacation liability balance is added to the payroll archive to support reporting of the balances in the Employer Liabilities section of these reports:

• Element Results Register

• Gross-to-Net Report

• Payroll Activity Report

• Payroll Balance Report

• Payroll Register

Statement of Earnings

The Statement of Earnings (SOE) reports the vacation liability balances in the employer contributions area.

Employee Active Payroll Balance Report

You can reconcile the vacation liability balances using the Employee Active Payroll Balance Report, which provides employee balance information for vacationable earnings and vacation liability.

Vacation Liability Balance Report

Use the Vacation Liability Balance Reportto view the balances associated with vacation liability. You can run this report to display all the vacation liability balances, rather than gather them using multiple reports. This allows employees to help reconcile vacation liability balances, as well as gather data using this one report for required vacation liability reporting.The balances reported are:

• Vacationable Earnings
• Accrued Vacation Liability
• Vacation Absences
• Vacation Payouts
• Vacation Liability
• Vacation Liability (ITD)

Use the following parameters to run the report:

• Payroll Statutory Unit
• Tax Reporting Unit
• Vacation Plan
• Payroll Relationship Group
• Start Date (mandatory)
• End Date (mandatory)
• Report Type (mandatory)
• Summary (default)
• Detail

In summary mode, the report displays vacation liability balances for the period determined by report start and end dates, for each vacation plan for all employees.

In detail mode, the report displays vacation liability balances for the period determined by report start and end dates, for all employees enrolled in a vacation plan. Balances are reported by vacation plan. Additionally, use the Vacation Plan parameter to filter those employees assigned to a specific vacation absence plan.

Note: Important points for the Vacation Liability Balance Report:

• The vacation liability is calculated, and related balances are generated in the payroll run, not in this report.
• This report is based on the data from the payroll archive.
• Use the Vacation Plan parameter to filter employee data based on the vacation absence plan defined on the employee’s calculation card.
• When you select Detail mode, the report displays both summary and detail information.
• The Vacation Absences balance value includes recorded absences for Entitlement, Discretionary and Final Disbursements.
• The Vacation Liability (ITD) value reports the accumulated vacation liability balance from each payroll run from inception, for the vacation plan.