What Does Prepay Vacation Mean for an Employee?

The term prepaid vacation means vacation days are routinely added to an employee's vacation leave account.

Identification

An employee can prepay his vacation days by approving a reduction in his paycheck. When the vacation days are paid in full, the employee may use them.

Features

If you are a full-time employee, one vacation day equals your annual pay, divided by the number of hours you work annually, times eight. If you are a part-time employee, it is possible you can purchase vacation days on a pro rata basis, according to Bethelcollege.edu. One day of vacation is equal to your annual pay, divided by the hours you work each year, multiplied by hours per day.

Types

We frequently engage in prepayment practices. When you buy a magazine subscription for a year, you are paying in advance, or prepaying, for a year's worth of issues.

References

• Bethel College: Prepaid vacations
• Have a Little Talk: What prepaid means