Partial and Advance Payments for Vacation Liability

The liability balance is normally paid out when the employee terminates, goes on a leave of absence, or when reconciling at the end of the vacation year.

You can make partial or advance payments as explained here.

Partial Payments

Use the Amount input value on the Element Entries page to make a partial payment less than the accumulated vacation liability of the employee, as given here:

• If the amount entered is positive, it’s paid out.

• If the amount entered is negative, the amount is ignored.

• Amounts are paid out regardless of the accrued vacation liability. If the amount is in excess of the accrued vacation liability balance, the employee’s resulting vacation liability balance becomes negative.

Advance Payments

You can also pay employees vacation liability in advance of them earning it. You pay employees an amount that is in excess of their current vacation liability balance.

Use the Amount field to process an amount greater than the current liability balance, as given here:

• The vacation payout amount isn’t capped at the actual accrued vacation liability amount.

• When the payout amount is in excess of the current vacation liability balance, the employee’s resulting vacation liability balance becomes negative.

• If the vacation liability balance is already negative, a payout can still be processed. This simply increases the negative liability.

• If you process vacation payout amounts that create a negative liability balance, it’s up to you to recover the advance payout amounts if required.