Calculate Vacation In-Advance Salary

 

Vacation In-Advance Salary


 
 Many companies pay their employees’ salaries before they go on their vacations, in the same month or covering several months of vacation.

 

Calculating the “vacation In-advance salary” is not an easy process as all income and deduction transactions will also be applied to it including calculating the prorated allowances, deducting the social security (GOSI in Saudi Arabia) as well as income tax.

 

A new feature has been added to ZenHR allowing you to “calculate employees’ Vacation In-Advance Salary including a reminder about their work Resumption Dates”.

 

TABLE OF CONTENTS


 How to Activate This Feature

Vacation In-Advance Salary Setup

 

User Menu à System Preferences à Financial Setup à  Vacation In Advance Salary Setup 


 A new setup page has been added allowing you to “activate the vacation in-advance salary calculation“. Through this page, you will be able to:

  • Decide if the social security (GOSI in Saudi Arabia) will be deducted from the vacation in-advance salary or from the monthly salary.
  • Choose the calculation base.
  • Select the allowances that will be included in the calculated salary.

 

 

 

The option “Include social security in Advance Salary Calculation if the duration is longer than half of the month” allows you to decide if you want to deduct the employee social security amount from the “salary advance” or from the month's salary - if the vacation duration was longer than half of the calendar month.

The In-Advance Calculation Base option allows you to select if you want the calculation base to be according to calendar days, a fixed number or to calculate the employee daily rate based on the average day rate per year.
 

In-Advance Allowances option allows you to select the included allowances in the salary advance, and the amount will be calculated based on the transaction set up to include the full amount or to calculate a prorated amount.
 

In addition to that, you will be able to decide if you want to include the holidays and

weekends in the “salary advance” calculation.

 

Vacation Setup

 

User Menu à System Preferences à Leaves & Vacations à  Annual Vacation Setup

 

The option “Ability to Calculate In-Advance Salary” has been added to the vacation setup allowing you to choose if you want to calculate the salary advance for this type of vacation transaction and the minimum number of days that will apply to this policy.

 

 

Time-offs Management

 

Main Menu à Time Management à Manage Timeoffs

 

This page has been divided into two tabs, the first one is the vacation days and the second one is the hourly leaves.The button "In-Advance Salary" will appear if the salary advance feature was activated for this type of vacation transaction.

 

 

By clicking on In-advance salary, the below page will appear:

 


 

Through this page, you will be able to check the vacation start and end dates, the salary advance start and end dates based on the vacation duration - noting that you can change it if needed - as well as the payment date. You can also specify if you want to pay the salary advance as an “out of payroll transaction”, or if you want it to be included in the effective date of the salary month.

By clicking the button Calculate, the salary in-advance details slip will appear as below, and you will be able to check the vacation details and the full amount of the employee salary advance.

 

 

You can check the calculation breakdown by clicking the button Show Details, to view each included month in a separate salary slip, and you can download these slips by clicking the button Download.

 

 

 

 

 

 

 

 

 

After paying the “vacation in-advance salary”, you can click the button Mark As Paid and set the payment date.


 

 

Manage Vacation In-Advance Salaries

 

Main Menu à Payroll à Vacation In-Advance Salaries

 

A new page has been added to the payroll section, allowing you to check all the

calculated vacation in-advance salaries as well as manage it.

 


 Vacation Resumption Date

 

Main Menu à Payroll à Vacation In-Advance Salaries

A new option has been added to the page “Manage Vacation In-advance Salaries”, allowing you to view the vacation resumption date which is the first working day after the employee’s vacation end date, and you will be able to update this date by clicking the date link.

 

 

 

By clicking on Create Resumption Transaction, the below page will appear, allowing you to add the actual resumption date for the employee and to take the needed action based on the number of days in the differences fields - if it was after or before the recommended resumption date.


  

 

 

By inserting the actual resumption date, the actions will appear based on the value in the differences field.

If the differences were in plus (+), then you will be able to add the days as vacation adjustments to the employee’s vacation balance, and no action will be taken.

 

 

If the differences were in plus, then you will be able to select one of the below options:

Do Nothing

 If the difference were in minus then you can choose one of the below optios:

 

1- Vacation Adjustment


 

Using this option, you will be able to deduct the difference amount from the employee’s vacation balance by adding an adjustment transaction.

 

 

2- Financial Transaction


 

You will be able to add a deduction financial transaction, and the system will recommend an 

amount equal to the working day’s value

 

.


 

 

3- Absence Amount


 

 

Using this option, you will be able to add the differences as unpaid vacation days to be deducted from the employee’s salary.

After adding the resumption transaction, you will not be able to add more transactions, unless you remove the first one.

 

Vacation Resumption Notifications

 

User Menu à System Preferences à Notification Setup

 

A new notification type has been added to the Notifications Setup page, allowing you to set reminder emails to be sent to HR admins, direct managers, and employees before a specific number of days from the recommended resumption date 

Calculating the Monthly Salary

Main Menu à Payroll à Manage Salaries

 

When calculating the employee’s monthly salary, there will be two scenarios:

  • Calculating a month that is totally included in “vacation in-advance salary”, and in this case, no salary will be calculated as it has already been paid.
  • Calculating a month that is partially included in “vacation in-advance salary”, and the vacation in-advance salary amount will be deducted from it, and the rest of the salary will be included as shown below.