vacation purchase

Mimi

We are looking at allowing employees to purchase vacation hours payroll deduction before taxes. It's pretty straightforward on computing hourly employees but what is the best way to compute cost for sales associates on commission?

Margaret Morford

You might consider using the average of their last 6 to 12 months commissions as their rate of pay.

HR IN MONTGOMERY

WE DON'T ALLOW ANYONE BUT OUR HOURLY EMPLOYEES TO SELL VACATION

Mimi

This is not to sell - this is to purchase pre-tax as an added benefit

dhnyct

What is your basis for a "pre-tax" purchase plan? Do you propose to handle payment through payroll or accounts payable? Sounds a little risky to me.

Sue

We looked into this and figured out it would be easier to allow the time to be unpaid, rather than prepaid for. It saves all the headaches of biweekly payroll calculations and what wages to use. An employee can take 5 days per year as unpaid vacation. The wage used is the current wage at the time of the absence. It's simple. Good Luck!