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Jessica1985

Manually enter vacation pay

Posted By

Hello! I have recently taken on a new client. This client has been doing his own payroll via the CRA Payroll Deductions Online Calculator.

I am in the process of entering all payroll information into Simply Accounting and have realized this client has incorrectly calculated and paid out vacation pay. Any suggestions for how I can manually enter vacation pay? Due to the vacation pay being incorrect, all other deductions were also incorrect. I have manually entered CPP, EI and income tax to match what was paid out, but cannot figure out how to go about changing the vacation pay so my entry matches the cheque total. Any help would be greatly appreciated!

The fix I have been using is to add the amount of vacation pay the employee was underpaid as a deduction, I'm just not sure what this will mean for the employee when they file their taxes. 

Thank you!

  • 0
    not sure how many employees?,
    is vacation paid out every check?,
    how many pay periods are in error?
    how big ($$$) is the error ?

    can you add/subtract the erroneous vacation amount from the correct vacation pay on the next pay period


    if that's not an option, you would need to calculate the correct paycheck for each errorneous one
    for each paycheck, in one entry you could record
    a reversal of the original transaction
    the transaction for the correct paycheck

    this will net out the correct source deductions
    the balance due to the employee can be allocated to a suspense account

    once all errors have been resolved you can write a cheque to each employee to clear out the suspense account
  • 0 in reply to Roger L
    If I find a vacation error which is very rare, I adjust the vacation pay on the next payroll by changing the amount it calculates for the new pay period.
  • 0
    I would post the paycheques with the wages and deductions as written so the cheque amount agrees with what was paid out. Once everything is posted record an adjusting paycheque to add or remove vacation owed as necessary to get the correct balance on the books. I would do this as a separate entry labelled vacation adjustment and make sure you keep thorough records of your calculations to back up the adjustment in case of an audit.

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