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Updating the Employee's Payroll Record

18–18 Simply Accounting

Amc18.doc, printed on 12/05/97, at 12:03 PM. Last saved on 12/05/97 10:24 AM.

Confidential ACCPAC International

at the end of a calendar year, complete Record of Employment

forms on an employee's termination, and answer any of the

employee's questions about their compensation.

Aside from keeping track of year-to-date totals for every

category of gross earnings and deductions, the employee's

record keeps track of:

Contributory Earnings

Insurable Earnings

Vacation Owed

Advances Paid

The contributory earnings and insurable earnings amounts are

figures that must be put on each employee's T4 slip at the end of

each calendar year.

The vacation owed amount is the total of all vacation pay which

an employee has earned and the employer has retained during

the year, but has not yet been paid out. For instance, if an

employee had cash earnings of $10,000 during a year, and

received vacation pay at the rate of 4% (which the employer

retained), the vacation pay retained during the year but not yet

paid out would total $400.

If the employee was actually paid out $100 of vacation pay

during the year, the vacation owed balance would be $300, and

the $100 actually paid would be recorded as vacation pay in the

section of the employee's record that keeps track of the various

categories of gross earnings. If the employee was actually paid

$600 vacation pay during the year, the vacation-owed balance

would be a negative balance of $200, and the $600 would be

recorded as vacation paid.

The advance paid amount is the total of all advances that have

been made to the employee, but have not yet been recovered.

For instance, if an employee received an advance of $300, and

the employer subsequently recovered $200 of the advance, the

advance paid would be $100.