Are there any implications (legal etc) for a company that asks you to charge to vacation but work through it for accounting purposes? Understand this is a common enough practice but never knew issues?

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OP, are you at EY and experiencing this? If so, please actually report it to the ethics hotline or to leadership (if you’re comfortable with that). It’s super important to be accurate with accounting and time charging, because EY, as an auditor, would get slammed if audits of its own books revealed inconsistencies.

It definitely does happen, but we really try to prevent it for this reason. Please get someone’s eyes on the details to make sure it’s ok.

If you are on PTO and you end up working, add your time worked to your time sheet and decrement from your PTO to compensate. That’s how it’s supposed to work.

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I should clarify to my knowledge this is not being asked for at EY.

I wanted to ask as I know it’s a strict no no in EY and we’re technically only ever to bill actuals but wasn’t sure if this was legitimate accounting fraud if being done as a profit increasing measure.

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From my understanding, not if you're a salaried employee; the only time it could potentially be an issue is if you're an hourly employee and you're doing work you're not getting paid for. Since that isn't the scenario you're talking about, the company should be in the clear.

Note, I'm neither a lawyer nor do I play one on tv, so don't take my comment as binding legal advice.

This seems like underbilling and a mgr. taking advantage of paid benefit

Is this really a common practice? Not that I don’t believe you. I’ve only been in consulting a short time so hearing this implemented in some groups, I just thought it was special circumstances. If I’m forced to take a vacation then I would take those days as vacation and not work. I’d imagine there would be some labor laws around this, but I’m not an attorney so couldn’t say for certain.

I could see this becoming a class action later possibly if there’s any hint of laws being broken.

Call Ethics for advice before proceeding as this may break your firm’s rules.

It is one thing to ghost hours because your billing isn’t really changing as you are salaried. It is highly unethical but it’s common place.

Vacation versus working is something I’ve done before but I did it voluntarily in mutually beneficial interests. If you are being told to do it because of an accounting ask, just document.

This has tax payment implications for the employer

That seems weird. We have charge codes for practice development, write offs, admin time, etc when we’re not billing a client. I would think management would wait to be able to quantify how time is spent in order to forecast resource needs etc.

This is not a common practice. If you were asked to work a 60 hour week and bill 40 to client and 20 to vacation, that is unacceptable.

If you were on vacation and you got asked to do 30 min of work, then that's different and could reasonably be overlooked.

Yea - I would still Bill unless it was bd or a value add to client. Really moving for performance based delivery to selling variable pay model. Still more prior

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