Overview: By enabling time off accruals, you can set employees to earn time off hours automatically at a specified rate with the option to carry over balances. An employee can be set up with as many accrual rules as needed.
Important: All work hours, such as Regular or Overtime, count towards time off accruals. Time off used by an employee does not count towards accruals.
Instructions:
Enable Time Off & Accruals
1. Start by clicking Settings followed by Time Off:
2. If not already done, check the box next to Allow Employee Time Off and Save.
3. Some new options will populate. Check the box next to Allow Employee Time Off Accruals and Save:
Configure Accrual Settings
1. Once time off accruals have been enabled, navigate to the Time Off Earning Codes section. The column Included in Time Accruals will indicate whether an earning code will be available when creating an accrual rule:
2. To configure the accrual settings, you can either Edit a pre-existing time off earning code or + Add a New Time Off Earning Code:
3. Whether you Edit a default earning code or Add a New Time Off Earning Code, you can set the:
Name (visible to employees when requesting time off)
Abbreviation (used in different areas of the system)
Accrual status (included in accruals or not)
Pay type (Paid or Unpaid)
4. Further down, you'll see more options that can be set up based on your needs. This includes:
Allow Negative Time Off Balances: If negative balances are disabled, an employee will not be allowed to request time off if it would cause them to go into the negative. Learn more here.
Set a Maximum Hours Allowed: This option determines how much time off an employee can accrue. Learn more here.
Set a Maximum Annual Carry Over: By default, our system will carry over balances. If you want to reset balances or specify the amount carried over, you can do so using this option. Learn more here.
5. And lastly, you have the option to Assign Time Off Earning Code to all current and future employees or you can assign the time off earning code to select employees:
Create a New Time Off Accrual Rule
Once time off accruals are enabled and you've included at least one time off earning code in accruals, you can move on to creating a time off accrual rule.
1. On the Time Off Settings page click Accrual Rules in the left-hand menu. Once at that section click + Add a New Time Off Accrual Rule:
Important: The + Add a New Time Off Accrual Entry option is used to enter pre-existing balances or manually adjust an employee's available PTO. More information about that option can be found here.
2. When creating a new time off accrual rule, you'll be able to select from one of three different accrual frequencies including:
Per Pay Period: Employees will accrue a set amount of time off per pay period. The accrual applies the day after the pay period closes. Click for Example
Hours Worked: Employees will accrue time off based on the number of hours worked. The accrual can be set to apply 1 to 5 days after the pay period closes. Click for Example
Yearly: Employees will accrue a set amount of time off on the specified annual/yearly date. Click for Example
3. After you've made all the necessary selections, be sure to Save your accrual rule when done and you'll be taken back to the Accrual Rules section:
FAQ
Q: Can accruals be automatically backdated or applied to the past?
A: No. Employees will start earning accrual amounts when they're added to an accrual rule and moving forward. We do not retroactively apply accruals.
To manually add accruals for past dates, follow the steps in this article here and set the Entry Date to the past date in question.
Q: Does the time off accrual feature work with both punches and the time entry (duration)?
A: Yes, the Time Off Accrual feature will work whether your employees are adding time via punching or the time entry (duration) option.
Q: What happens if an employee works a partial amount of hours during a pay period and I use the Hours Worked accrual frequency?
A: If an employee works a partial amount of hours during a pay period they will earn a prorated amount of time off based on the parameters set by the rule.
For example, if the accrual rule is set to earn 1 hour of time off for every 8 hours worked and an employee works 4 hours in a pay period, they would earn 0.5 hours of time off.
Q: Does time off used by employees count towards time off accruals?
A: No. Time off that's used by employees does not count towards their time off accruals.
Q: When do time off accruals occur?
A: When time off accruals will occur depends on the frequency type chosen when creating the accrual rule as detailed here.