Vacation Money

For each Absence Claim, you can optionally define whether the Vacation Money should be paid with balance (monthly accruals) or with immediate payment.

With balance

If the company commonly only has the With balance option, then ST 2000 is used in most cases for provision, including the consideration of social costs and tax liability. With ST 8860 only the balance is paid then, WITH NO consideration of obligations, because they have already included in provision.

‘With balance’ example:

ST 2000 posting: Wage costs / Current account of holiday remuneration --> Subject to social insurance and taxes

ST 8860 posting: Current account of holiday remuneration / Transitory wage account --> NOT

subject to social insurance and taxes

Immediate payment

If the company commonly has only immediate payment of the vacation payment remuneration, then in most cases salary type 2010 is used for it. This means that this ST is posted as wage expenditures. The obligations and tax liability are considered similarly.

NOTE (exception):

However, if an accrual is triggered for one refunding of absences and the immediate payment for the other in the same client, two different salary types are required, for example ST 2000 for accruals and ST 2010 for immediate payments.

‘Immediate payment’ example with different holiday pay salary types:

ST 2010 posting: Wage costs / Transitory wage account --> Subject to social insurance and taxes