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.
Payroll > Employer Payroll Tables > Benefit/Deduction Codes.
Add a new
Benefit Codeby pressing
Full Namefor the Benefit Code.Figure 1. Example Code and Full Name
Deduction Data Setup
Deduction Data tabof the Benefit/Deduction Codes settings.
Short Nameto use for the Benefit Code.
Accrued Sick Leave.
Change the entitlement options to
Accumulate in Days,
Display in Units,
Validate taken Units.
A formula will be used to ensure that the entitlement is given to all employees correctly.
Formulas tabof the Benefit Code settings.
@IF( L6 == 0, 5 , 0 )into the Leave
Leave Units L0=field.Figure 2. The
Leave Units L0field accumulates leave according to the
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 process
Entitlement 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.
Canadian Payroll > Employer Payroll Tables > Earnings Codes.
Add a new
Earning Codeby pressing
Insertto open the Earning Code setup form.
Full Namefor the Earning 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
Earning Data tabof the Earning Code settings.
Short Nameto use for the Earning Code.Tip: % of Basic
% of Basicwhat 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).
Accumulate Work UnitIn drop-down select
Earning Typedrop-down select
TakeLeave.Note:This enables the Leave Entit. field.
From the Leave Entit. drop-down select the personal day entitlement Benefit Code.
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.
T-Slipstab from the Earning Code settings.
T4 Boxdrop-down select code
14 - Income. (This will add the earnings for this earnings code to the income amount reported on the t4 form.)
RL1 Boxdrop-down select code
A - 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 tabto ensure that they are correct.
Save the personal day entitlement Earning Code by pressing
Add Personal Day Entitlement to an Employee
Canadian Payroll > Employee Profile > Employee Profile.
Employee drop-downselect the employee to add the entitlement to.
Employee Profile menuon the left open the Deduction/Benefits >
Leave Entitlements tab.
Add the entitlement Benefit Code by pressing
Select the personal day entitlement code from the
Deduction Code drop-down.Tip:
Code Type, the
Expirydates, and the
Activeoption can be left as default.
Add the entitlement code to the Employee Profile by pressing
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.)