When integrating Planday with a payroll system like Xero, Sage50 or Quickbooks, you will need to input holidays a little bit differently. To send the holiday over to your payroll system, there will need to be data on the schedule. This will mean creating a shift, marked with a vacation shift type, so it will be sent over to your payroll system. Here are some steps to follow to make sure vacation is being sent over:
Creating your vacation accounts
Go to Settings > Absence, Overtime, Vacation > Account types and create your vacation accounts as normal. You can use both fixed and accrued accounts, for your salaried and hourly employees. These will still form the basics of your vacation system, allowing you to book in holidays and keep track of both vacation and accrued accounts for your employees.
For more information on this step, check out this guide on creating vacation accounts.
Create a Shift type
Go to Settings > Schedule > Shift types, and create a Shift type to use when creating vacation shifts on the schedule. Give it a name and set the rate to 100%. The salary code is important, as this is what will connect this Shift type to your payroll system:
- If using a Sage50 integration, the salary code for this Shift type must match the Sage payroll element you use for vacation.
- If using Xero, the salary code must be set to match the earning rate/leave type in Settings > Integrations > Xero.
For this example, let's say that the element and the leave type are both set to the salary code 2. Your Shift type should then look like this:
And the following functions should read as:
Once the Shift type is created, you are ready to apply it to shifts on the Schedule, which will be how we send the holiday hours and payment to your payroll system.
You will use Planday to keep track of your vacation balances and your vacation requests. All vacation will come through Planday first, and then on to the payroll system.
The process for both requesting and approving vacation will be the same as normal, for both fixed and accrued vacation accounts. Vacation will be requested by the employee and approved by the manager through Schedule > Absence requests.
Sending Vacation to your payroll system
As the vacation request on its own has no links to Payroll, you will need to make that connection through Shifts from your Schedule. That way, the correct payment will register automatically.
Go to the Schedule > Employee view and find the Vacation. Remember that you can use Filters to see only the employees you need. The view should look like this:
For each day of the Vacation period (marked in the Schedule), you will need to create a Shift that uses the Shift type you created before.
The Shift will need to have a Start and End time that correspond to the number of hours deducted from the vacation account balance for that day.
In the example with the 40 hours/week employee, each Shift would be 8 hours long.
When you've finished creating Shifts (of the Vacation Shift type), your Schedule should look like this:
As you can see on the left-hand side, underneath the employee's name, they now have 40 hours of Vacation time registered for this week, which will automatically be reported to Payroll.