How to accrue hours for PTO, vacation, sick, personal, etc. Set up rules for accrual.
Time Off accruals is a method by which the program automatically adds hours to employee time off banks. Each employee has a bank of hours for each reason you create. Examples might be vacation, sick, personal, training, annual, comp time, etc. You create the list that suits your organization. After creating the list, you'll see that each time off reason in the list has available hours. Employees can take those hours off whenever they wish. Once a time off request is approved the hours are subtracted from the available hours. Managers can update the available hours manually, or automatically using time off accruals.
Automated updates to time off accruals is the subject of this video.
Automatic time off accruals occur on a daily, weekly, or monthly basis. Certain rules that match your company policies go into effect automatically and update the available hours for each time off reason. The fields and rules for this automated sequence are outlined below.
Available This is the bank of available hours described above. Each employee has hours for each time off reason. When a time off request is approved, hours are automatically deducted from this bank.
Earn Hours The number of hours to earn in the period below. For instance, if an employee earns 40 hours of vacation per year, and they accrual it monthly, you would enter 3.33 into this field and choose "Monthly" in the Earn Period dropdown.
Earn Period Specifies when the Earn Hours are actually accrued. This can be weekly, bi-weekly, monthly, yearly, or using compensatory time for hours that exceed the employee schedule
Reset to Zero This helps implement a use-it-or-lose-it policy. You can reset the available hours monthly or yearly.
Carry Over If you reset hours to zero, you can allow a portion to be carried over into the new period.
Date of Hire If you accrue hours yearly, you can use this date to have them updated. If this field is empty, the accrual occurs on the first of the year.
Accrue Day If you accrue hours monthly, you can use this day of the month to have them update. If this field is empty, the accrual occurs on the first of the month.
Don't Exceed This allow you to specify a number of available hours which will never be exceeded. It prevents employees from hording hours that can be used against you if they decide to leave the company.
Overdraft When taking time off, employees may not have enough hours to take. If this number is greater than zero, they can overdraft from this field to get the hours they need. If the field is zero, they must have enough hours in their available bank before the time off request can be submitted.