Vacation Payout Amount to Contribute to Vacation Liability

Vacation liability payout elements can now be configured to contribute to vacation liability.

This supports statutory compliance in Alberta, British Columbia, Newfoundland and Labrador, Quebec, Saskatchewan and under the Canada Labour Code, where vacation pay is considered vacationable earnings and must contribute to vacation liability.

New Element Template Question

When creating vacation payout elements, with a primary classification of Supplemental Earnings, a new template question has been introduced:

“Does this element contribute to vacation liability?”

This question determines whether amounts paid using the element are treated as vacationable earnings and included in the vacation liability balance, and is displayed only when the template question “Is this element used to pay out vacation liability?” is set to Yes.

If the element is designated as contributing to vacation liability, the contribution would also be controlled by the vacation wage basis rules for each province.

This image illustrates the new template question on the element creation page.

Create Element

Create Element: Additional Details

New Input Value

When the template question is set to either Yes or No, a corresponding input value is created for the element.

  • Input Value Name: Contribute to Vacation Liability
  • Options: Yes / No

This feature allows you to configure vacation payout element to contribute to vacation liability to meet statutory requirements across various provinces and the Canada Labour Code.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

  • This feature is available only for new vacation payout elements.
  • Existing vacation payout elements aren’t impacted by this feature. 

Key resources

Refer to these documents on the Canada Information Center for additional information.

Canada Information Center: https://support.oracle.com/support/?anchorId=&documentId=KA144

  • CA – Payroll tab > Product Documentation > Technical Briefs > Vacation Liability Processing