Automate Vacation Accruals in Visual Studio .NET

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The accounting topic that is of the most interest to the most employees is how much vacation time they have left In most companies, this information is kept manually by the payroll staff, so employees troop down to the payroll department once a month (and more frequently during the prime summer vacation months!) to see how much vacation time they have left to use When employees are constantly coming in to find out this information, it is a major interruption to the payroll staff because it happens at all times of the day, never allowing them to settle down into a comfortable work routine If there are many employees who want to know about their vacation time, it can be a considerable loss of efficiency for the payroll staff A simple way to keep employees from bothering the payroll staff is to include the vacation accrual in employee paychecks The information appears on the payroll stub, showing the annual amount of accrued vacation, net of any used time By
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Payroll Best Practices / 65
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feeding this information to employees in every paycheck, there is no need for them to inquire about it in the payroll office, eliminating a major hindrance There are several points to consider before implementing this best practice First, the payroll system must be equipped with a vacation accrual option If not, the software must be customized to allow for the calculation and presentation of this information, which may cost more to implement than the projected efficiency savings Another problem is that the accrual system must be set up properly for each employee when it is originally installed, or else there will be a number of outraged employees crowding into the payroll office, causing more disruption than was the case before This startup problem is caused by employees with different numbers of allowed vacation days per year, as well as some with unused vacation time from the previous year that must be carried forward into the next year If this information is not accurately reflected in the automated vacation accrual system when it is implemented, employees will hasten to the payroll department to have this information corrected at once Another problem is that the accruals must be adjusted over time to reflect changes Otherwise, once again, employees will interrupt the staff to notify them of changes, thereby offsetting the value of the entire system For example, an employee may switch from two to three weeks of allowed vacation at the fifth anniversary of his hiring The payroll department must have a schedule of when this person s vacation accrual amount changes to the three-week level or the employee will come in and complain about it If these problems can be overcome, using vacation accruals becomes a relatively simple means of improving the efficiency of the payroll department Have a schedule available in the payroll department that itemizes the dates on which employees with sufficient seniority are scheduled to have increases in their allowed vacation amounts; include a review of this document in the monthly departmental schedule of activities, so that accrual changes can be made in a timely manner Also, train the payroll staff in the proper data entry into the payroll system for any vacation hours taken by employees Finally, create a procedure for making changes to the data in the automated vacation accrual system, so that the staff can correct errors in the system
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A company that grows by acquisition is likely to have a number of payroll systems one for each company it has acquired This situation may also arise for highly decentralized organizations that allow each location to set up its own payroll system Though this approach does allow each location to process payroll in accordance with its own rules and payment periods while also allowing for local maintenance of employee records, there are several serious problems that can be solved by the consolidation of all these systems into a single, centralized payroll system
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