Vacation year shift - A step-by-step guide

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Vacation year shift - A step-by-step guide</span>

For many of us who are working with payroll administration the vacation year shift is closing up. Do you have full control of the routine? With the help of Susanne Fagerström, Application Consultant Specialist, we have made a check list to help you make sure you don’t miss anything.  

  1. Finish the payroll that includes discrepancies up on to and including March 31. Usually this is the April payroll. Also make sure that all vacation days taken out have been reported and that all absence not qualifying for leave is reported.
  2. Make sure all employees have the correct annual leave agreement and annual leave entitlement. If the employee has got a new annual leave entitlement in the course of the year, this should usually be changed after the vacation year shift.
  3. Take out the vacation debt. Take out the vacation debt for accumulated and paid out days up to and including March 31.
  4. Review and audit the number of vacation days. Make sure that the number of vacation days reflects the annual employee’s annual leave entitlement and that those who have had absence not qualifying for leave have a lower number of vacation days. Also make sure that the employees have taken out at least 20 days and do not have too many saved days left. Verify that the values seem correct for employees who receive variable pay or percent of pay earned. You should also take a closer look at employees having had a lot of absence qualifying for leave.
  5. Perform a preliminary vacation year shift. As the vacation year shift cant’ be reversed once it is completed, if possible, you should always make a preliminary vacation year shift first, just to be on the safe side.
  6. Take a backup. If something should go wrong with the vacation year shift, it’s good to have a backup copy.
  7. Perform the vacation year shift. Perform the vacation year shift in your payroll system. In case someone should have received the incorrect number of days. This can always be adjusted afterwards.

  When you have worked through these seven steps you are finished. Any remaining paid vacation days have been moved to saved days on the new vacation year, and new paid days have been calculated and made available. Finally, Susanne, is it anything special you have noticed that one often misses in the vacation year shift? - Yes, if an employee has had a lon-term sick leave and yet has had variable pay, you may have to adjust the variable holiday pay supplement manually. In this case, Susanne’s advice is: have a look at a similar employment and go from that when making the adjustments. With Flex HRM Payroll you can easily handle different agreements in the vacation calculation and set up your own calculation formulas for the vacation agreements. You can also enter individual discrepancies concerning e.g. additional vacation days per year. Furthermore, e key ambition has been to provide a clear overview of the company’s vacation debt. Are you using Flex Lön? Here you can find a detailed description on how to proceed with the vacation year shift in Flex Lön.  [caption id="attachment_8825" align="alignleft" width="300"] Susanne Fagerström, Application Consultant Specialist[/caption]

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