Employees may be entitled to take personal days during their employment. This guide will cover how to keep track the number of personal days an employee is entitled to and ensure that they are paid appropriately when they take a personal day.
limited to 5 personal days per year,
not carried-forward into the next year if they are not used,
generated automatically each year,
paid at the employee’s normal daily-rate.
Add Benefit Code for Personal Day Entitlement
Using a Benefit Code the number of personal days available will be stored as an entitlement. When an employee is paid for a Personal Data the entitlement will be reduced automatically.
Open Canadian
Payroll > Employer Payroll Tables > Benefit/Deduction Codes
.Add a new
Benefit Code
by pressingInsert
.Enter the
Code
andFull Name
for the Benefit Code.Figure 1. Example Code and Full Name
Deduction Data Setup
Open the
Deduction Data tab
of the Benefit/Deduction Codes settings.Enter the
Short Name
to use for the Benefit Code.From the
Type drop-down
selectAccrued Sick Leave
.Enable
Leave Entitlement
.
|
Change the entitlement options to
Accumulate in Days,
Display in Units,
Validate taken Units.
Formula Setup
A formula will be used to ensure that the entitlement is given to all employees correctly.
Open the
Formulas tab
of the Benefit Code settings.Enter
@IF( L6 == 0, 5 , 0 )
into the LeaveLeave Units L0=
field.Figure 2. TheLeave Units L0
field accumulates leave according to theGen. Frequency
Leave Units L0= @IF( L6 == 0, 5 , 0 ) (1)
1 Sets the leave units of the entitlement to 5 days. Notes:When an employee takes a personal day it is recorded separately from the accrued entitlement (not deducted from the accrued entitlement) so the number of accrued days will remain at five after the entitlement is taken.
During the year-end processEntitlement accrued amounts are reset from
Canadian Payroll > Year End > Initialize Entitlements.
The formula will apply 5 days of personal day entitlement during the next pay-period automatically (because the accrued amount is now zero).
Add Earning Code for Personal Day Taken
record when a personal day is taken,
pay the employee their normal daily rate for the personal day,
deduct the taken personal day from their entitlement amount.
Open
Canadian Payroll > Employer Payroll Tables > Earnings Codes
.Add a new
Earning Code
by pressingInsert
to open the Earning Code setup form.
Basic Setup
Enter the
Code
andFull Name
for the Earning Code.- Code
The code must be a 3-digit number between 001—499.
- Full Name
The full name of the Benefit Code may be displayed on employee statements or other reports.
Earning Data Setup
Open the
Earning Data tab
of the Earning Code settings.Enter the
Short Name
to use for the Earning Code.Tip: % of Basic% of Basic
what percent of the employee basic rate to use for earnings with this Earning Code (it should default to 100% which will pay the employee their normal rate).From the
Accumulate Work Unit
In drop-down selectDays
.From the
Earning Type
drop-down selectTakeLeave
.Note:This enables the Leave Entit. field.From the Leave Entit. drop-down select the personal day entitlement Benefit Code.
T-Slip Setup
Because the employee is paid for the personal day, the earnings should be included with the employee’s income on their t-slips. Earning Codes can be setup from the T-Slips tab to include the earnings on the t-slips automatically.
Open the
T-Slips
tab from the Earning Code settings.From the
T4 Box
drop-down select code14 - Income
. (This will add the earnings for this earnings code to the income amount reported on the t4 form.)From the
RL1 Box
drop-down select codeA - Employment income before srce ded
. (This will add the earnings for this earnings code to the income amount reported on the Revenu Quebec RL-1 form.)
Figure 1: Example T-Slip setup for the personal day entitlement Earning Code.
Review and Save
Review the settings in the
Accumulators tab
to ensure that they are correct.Save the personal day entitlement Earning Code by pressing
OK
.
Add Personal Day Entitlement to an Employee
Open
Canadian Payroll > Employee Profile > Employee Profile
.From the
Employee drop-down
select the employee to add the entitlement to.From the
Employee Profile menu
on the left open the Deduction/Benefits >Leave Entitlements tab
.Add the entitlement Benefit Code by pressing
Insert
.Select the personal day entitlement code from the
Deduction Code drop-down
.Tip:Code Type
, theEffective
andExpiry
dates, and theActive
option can be left as default.Add the entitlement code to the Employee Profile by pressing
OK
.
Example: Entitlement Added During Payroll
When the next payroll is processed the employee will automatically receive 5 days of personal day entitlement.
(Because the formula used on the entitlement code checks if the employee has zero entitlement days accrued—which they do—and automatically generates 5 days for the entitlement amount that pay period.)