How to calculate average earnings for a business trip and vacation pay

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

How to pay for the days spent by an employee on a business trip? This is a problem that a beginner accountant will undoubtedly face. Which is easier than giving him a regular salary, because he worked all this time for the enterprise. But everything related to labor relations is subsequently subjected to a painstaking check by regulatory authorities.

When an employee reports on the advance report, attaching a certificate, where it is specifically recorded: “departed from“N”, arrived at“S”, etc…”, he is charged per diem, pays for travel, receipts from hotels and other expenses. In addition, there is a need to calculate the average earnings for a business trip. It should be noted that payment for holidays and weekends spent on a trip is doubled. The calculation of average earnings for a business trip is simple. We divide the amount of remuneration for 12 months by the working days of thisyears and after we multiply by the duration of the working trip. Please note that sick leave, vacation pay and other social benefits should be removed from accruals. And at the same time, this includes bonuses (which are accrued in these months), various allowances (for harmfulness, length of service, as well as working conditions, etc.), additional payments for combining positions, working at night, overtime, holidays, as well as material assistance (in money and material terms).

From time to time there is an increase in salaries at enterprises. As a result, two periods will participate in the total income. The first is the salary before the increase, multiplied by the coefficient obtained from the ratio of the new rate to the old one. But keep in mind also that only accruals that increase simultaneously with the salary are subject to adjustment, and the rest will remain unchanged. In addition, if their growth occurred due to a transfer to another position, then no recalculations are needed. The total amount is then added to the reward for the second period. Further, the calculation of average earnings for a business trip is repeated similarly to the above method. All payments are summed up, divided by the number of working days, and the resulting value is multiplied by the number of days the trip lasts.

The calculation of average earnings for vacation pay has its own nuances. If the employee has not been paid for it three days before the vacation, then you can safely write an application to postpone the vacation (otherwise, interest is due for the delay - article 124). The method of calculating the base is similar to calculating the averagebusiness trip income. It is also equal to the previous 12 months, except that they do not include the one from which they go on vacation.

Vacation pay is calculated as follows: the total income is divided by the product of 12 (the number of months) and 29.4 (the average monthly number of hours), then they are multiplied by the days of rest. Quite often it happens that an employee in the previous period was already resting or sick. Then the procedure for calculating average earnings differs only in that the first number will not look like 12x29.4, but like this: 29.4 x the number of full months + calendar days from incomplete ones. In turn, each period not fully worked is calculated separately. To do this, 29, 4 is divided by the days of the selected month, and then multiplied by the worked days of the same time period. Payments made for sick leave, business trips and vacations are deducted from basic income. The rest remains unchanged. Compensation is calculated in a similar way when a specialist does not want to go on vacation or quits.