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About Shirley McAllister, CPP, PHR
Expertise
I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience
25 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association)

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

 
   

You are here:  Experts > Business > Corporate Law > Employment Law > calculation of unused vacation time

Employment Law - calculation of unused vacation time


Expert: Shirley McAllister, CPP, PHR - 6/30/2009

Question
Company policy is to pay unused vacation time at time of termination.  How is that caculated? Annual salary divided by 223 days or by 365?  

Thanks

Answer
If the employee is hourly it is 8 hours times the hourly rate times the days due.
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If the employee is salaried exempt it is calculated this way:

52 weeks in a year x 5 days in a week is 260 days work days in a year.

Annual salary divided by 260 is total per day x days of vacation due

So if you were salaried exempt and had 10 days of vacation and earned 50,000 a year your vacation time would be:

50,000 divided by 260 is 192.30 per day x 10 days is 1923.00

Days are always used for salaried exempt never hours. If you did calculate hours it would come out the same. You would use 2080 hours which is 52 weeks x 40 hours=2080 hours in a year. 50,000 divided by 2080 is 24.03 x 8 hours is 192.24 x 10 is 1922.40 it is 60 cents difference in rounding, but basically the same.

Shirley  

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