What are the payoffs to the worker who goes on vacation
Under Employment Legislation all employees are entitled to annual paid leave of 28 calendar days. When calculating holiday pay uses a particular schema, which is useful to know not only the accountant but also to the interested party – the employee. For the basis of calculation is the average daily earnings over the estimated period for which accrued vacation pay is 12 months if during this period the employee worked at the company. The resulting amount is divided by the average monthly number of calendar days in a year – this figure is taken for the number, equal to 29.4.
However, in the case where the employee did not have time to work at the company for the entire year, vacation pay is calculated by another scheme. In this case, the number of work months is to be multiplied by 29.4 and add the working days in not completely fulfilled. Accrued wages should be divided by this number. The resulting amount is the average daily earnings. Then, the resulting sum should be multiplied by the number of vacation days. The result is the amount of holiday pay, which the accountant must withhold income tax of 13%. The remaining amount the employee must give up at the first day of the holiday.
How to count the bonus in the calculation of holiday pay
Premiums also are paid from the wage Fund and should be involved in calculating the vacation accrual. However, it is a different scheme than the calculation of average daily earnings and is calculated separately. The fact that there are several types of bonuses: monthly, quarterly and annual. In calculating the vacation they are participating only in the case when the premium period coincided with the calculated one.
If these periods coincide partially, the accountant should consider the premium in proportion to the time worked by an employee in the billing period. In this case, the offset is not taken the whole of the bonus, but only that part which corresponds to the number of hours worked in the calculation period. Promotion paid in a fixed amount, is also taken into account according to hours worked. The annual bonus is only counted in the case where the period of payments coincided with a calculation, otherwise it is transferred to the next billing period.
In the calculation of holiday pay are only those of the award, provided that provisions on remuneration of employees of the organization and reflected in the costs of the enterprise in FIG. Discretionary bonuses paid from other sources, in the calculation of vacation pay not taken. These benefits may apply incentive award paid for the fulfillment of the plan, various developments, etc. Calculated amount added to the principal amount of the holiday and NLPHL is deducted from the entire amount of the charges.
There are many online services that enable the employee to calculate the estimated size of holiday pay and understand what amount he can count when you leave.