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Understanding vacation pay calculation timing

You can control how vacation pay is calculated by choosing which date determines when it’s included in a pay run. This ensures vacation pay aligns with your business’s preferred payroll and accounting process.

Rachel Fisch avatar
Written by Rachel Fisch
Updated over a month ago

💡 This setting only affects when vacation pay is triggered in the pay run, not how it accrues.

Where to find the setting

  1. Go to Business settings

  2. Click the Vacation pay tab

  3. Locate the Vacation pay calculation timing section
    This section includes a Calculation date dropdown

Calculation date options

Choose from the following options in the dropdown:

Option

Description

Recommended for...

Pay date (default)

Vacation pay is included based on the date employees are paid

Tracking payouts based on cash flow (when money leaves the business)

Period start

Vacation pay is based on the first day of the pay period

Accruing vacation from the beginning of the work cycle

Period end

Vacation pay is calculated using the last day of the pay period

Aligning vacation pay with the end of a worked period

Save your selection

Once you've chosen your preferred option, click Save to apply the setting. Future pay runs will use this timing to determine when vacation pay is included.

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