MLS 2026 allows the operator to:
👉 process paid sick leave and vacation pay
directly through the Payroll Processing system.
The system tracks:
•earned sick days
•earned vacation days
•prior payments
•remaining balances
for each employee automatically.
This helps maintain:
•accurate employee records
•payroll consistency
•proper accounting totals
while simplifying payroll preparation.
Accessing Sick and Vacation Pay
To process sick or vacation pay:
👉 select:
•Payroll Processing
•Sick/Vac Pay
from the Payroll menu.
The system first prompts for:
•the employee code
Once the employee is selected:
👉 the Sick/Vacation Pay entry form is displayed.
Sick Pay
The:
👉 Sick Pay
section is used when employees are absent due to:
•illness
•injury
•approved medical leave
The system tracks:
•earned sick time
•sick pay previously used
•remaining available sick days
according to the employee setup information.
Vacation Pay
The:
👉 Vacation Pay
section is used for:
•paid vacation leave
•personal time off
•long weekends
•annual vacation payouts
Vacation may be paid:
•one or two days at a time
•during extended vacations
•as a lump-sum annual payment
depending on company policy.
Available Days
The:
👉 Available Days
field displays:
•the number of days currently earned by the employee
based on:
•employment duration
•accrued benefits
•prior sick/vacation payments
The system automatically subtracts:
•previously paid days
from:
•earned totals
to determine the current available balance.
Number of Days to Pay
Enter:
👉 the number of sick or vacation days
to be paid during the next payroll cycle.
The system then calculates:
•the payment amount
•payroll totals
•payroll entries
automatically.
Amount Per Day
MLS 2026 automatically displays:
👉 the default daily payment amount
configured in the employee setup record.
However:
👉 the operator may override the amount if necessary.
This flexibility is useful when:
•special rates apply
•bonus vacation pay is issued
•policy adjustments are needed
•partial-day calculations are required
Payroll Processing
The entered sick or vacation pay information is:
👉 stored in payroll records
and automatically included:
•during the next payroll processing cycle
The system then:
•calculates gross pay
•applies deductions
•updates totals
•posts accounting entries
as part of normal payroll operations.
Important Sick Pay Warning
⚠️ MLS 2026 allows sick pay to be advanced even if:
•sufficient earned days do not exist
This creates:
👉 a deficit condition
where the employee has received more sick pay than earned.
Why Advance Sick Pay Carefully
Advancing excessive sick pay can create problems if:
•the employee resigns
•employment is terminated
•repayment cannot legally be recovered
In many jurisdictions:
👉 unearned sick pay may not be reclaimable
after employment ends.
For this reason:
⚠️ substantial advance sick pay is generally NOT recommended.
Recommended Company Policies
Businesses should establish clear policies regarding:
•sick pay accrual
•vacation accrual
•maximum balances
•carry-over rules
•advance approvals
•payout eligibility
Clear policies help prevent:
•employee disputes
•payroll confusion
•accounting inconsistencies
Recommended Best Practices
When processing sick and vacation pay:
•Review available balances carefully
•Verify employee eligibility
•Confirm company policy compliance
•Avoid excessive advance sick pay
•Maintain written documentation
•Review payroll totals before processing
•Coordinate policy questions with your accountant or labor advisor
Recommended Companion Sections
This section works closely with:
•Employee Withholding and Deductions
•Employee Pay Methods
•Payroll Processing
•Payroll Reports
•Payroll Troubleshooting
•Payroll Year-End Closing
Together, these sections provide a complete employee compensation and payroll management workflow within MLS 2026.