Canada | How do I process Vacation Pay so that it is added on top of Regular Pay?

When paying out Vacation Pay to an employee, it’s important to ensure it’s applied correctly, whether it should be added to or reduced from the employee’s Regular Pay. See the below steps to have the Vacation Pay (Taken) added on top of Regular Pay.

Step 1: Create the Vacation Pay (Taken) component on company level.

Navigate > Config > Payroll > Payroll Config > Payroll Components

Rename (optional) and select the "Income bases and formulas" to setup the component's income base on the "Define The Income" window.

Step 2: Process the Vacation Pay (Taken) component on the employee's payslip. This will add the Vacation Pay amount on top of the Regular Pay.

  Navigate > Employee > Payroll Processing > Edit Payslip > Allowances

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