Boyos, here's some basic accounting for you:

When an employee works, he earns a wage and accrues vacation time

Dr Wages $XXX
Cr Wages Payable $XXX

Dr Vacation Expense $XXX
Cr Accrued Vacation $XXX


So it's a double hit of expenses for the employer who takes a hit for wages and a hit for vacation accruals.

Everyone at my company has been walking on egg shells and NOT taking vacations, so that if a layoff happens they get a fatty payout of severance + unused vacation


But recently, the company has been pressuring employees to take vacation, this will reduce their wages expense because the debit will post to Accrued Vacation (reducing a liability) and not to an expense.

And it'll also reduce the accrued vacation balance so that when the layoff happens the company won't take a huge cash hit paying out all those unused vacation hours.


Layoffs right around the corner, let's hope some diversity hires get the boot.

I had an employer that started requiring everyone to take vacation at the same time - the week of Christmas and the week of 4th of July. New hires only got 2 weeks and so had almost no days they could take any other time. The layoffs had already started a while before that are probably still continuing now 20 years later. They're a shadow of their former self.

OP, u've been talking about ur company having layoffs every 2 weeks for the past 5 years

Is there anyone to layoff at this point?

It's pretty much over for all of you.

People thinking I can't get laid off end up getting laid off.

The thought of stability we once knew is over.

We are now living in the midst of the hurricane.

Be prepared, Jesus is coming.

Man I can only dream

OP it's over for you