Paying off vacation

Paying off vacation

Most payroll systems should allow a separate payment for vacation, thus ensuring that an employee does not change tax brackets.  All remuneration will have some type of code/title.  Most payments would have a title such as “regular hours”. In this case, the title is likely to be something like vacation bank hours. Upon full  payment of the vacation bank, the company will no longer have any vacation (time or dollars) liability.

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