This article discusses the policy types within PTO Accruals.
Article Topics:
Unlimited
The unlimited policy type allows employees to request an unlimited amount of time off with the associated earning type. With this type, there are no configurations to the policy and employees do not accrue hours, as their balance is always infinite.
The unlimited policy type can be used with all earning types, and is frequently used with the ‘Unpaid’ type. An unlimited accrual rule with the earning type ‘Unpaid’ allows employees to request an unlimited amount of unpaid time off.
Learn how to create an accrual rule for an 'unlimited' type policy here.
Accrued
With the accrued policy type, employees accrue earnings based on hours worked. Employees will accrue hours with the following formula:
- Hours Worked x Accrual Rate
For employees with hourly jobs, the hours worked totals are determined by labor hours in the DSS.
For employees with salary jobs, hours are accrued based on the employee's expected hours per day, which are calculated as the employee's 'Expected Weekly Hours' divided by 7.
Accrued hours for an accrual rule of this type will always expire or carry over on a specified date each year.
Primary Policy Settings
| Setting | Notes |
| Start Accruing | Employees will begin accruing hours a set number of days after their hire date. |
| X hours accrued per X hours worked | The accrual rate that employees accrue hours. The accrual rate is calculated as: Number of hours accrued / Number of hours worked Example: Configured Rule: 2 hours accrued per 40 hours worked Accrual Rate: 2/40 = 0.05 Employees will accrue 0.05 hours per hour worked |
| Accrue on Non-Worked Hours | Determines if 'non-worked' hours, such as hours associated with 'sick' earnings, are included when calculating an employee's total worked hours. |
| Calendar Year End Date | Date that accrued hours will expire each year. |
Additional Policy Settings
| Setting | Notes |
| Negative Balances | Determines if employees can request more time off hours than they have accrued. When enabled, employees will be able to submit time off requests that will result in a negative accrual balance. |
| Maximum Balance | The maximum balance of hours an employee can have before they stop accruing additional hours. When left blank, there is no maximum balance the employee can accrue. |
| Tenure Bonus | When enabled, the accrual rate and maximum balance for the employee can be increased based on their tenure with the company. Tenure is configured as the number of worked years since the employee's hire date. For each level of tenure bonus, the accrual rate must be increased. Increasing the maximum balance is optional. Multiple levels of tenure bonus can be configured. |
| Carryover | If enabled, employees' current accrual balances will be carried over on the set 'calendar year end date'. Otherwise, their current balances will expire. The percentage of the employee's balance and maximum hours to carry over can be defined. Carried-over hours can be set to expire after a set number of days. |
| Pay Out Expired Hours | If enabled, when an employee's accrued hours expire, earnings associated with the rule will be added to the DSS. |
Learn how to create an accrual rule for an 'accrued' type policy here.
Fixed Day
With a fixed day policy, employees will accrue a set number of hours on a selected day each year or on a recurring schedule. The selected day can be the employee’s birthday, anniversary, or a custom date. Recurring schedules can be weekly, bi-weekly, or monthly.
Accrued hours associated with a selected day will always expire or carry over on the selected accrual date in the following year.
Primary Policy Settings
| Setting | Notes |
| Date of Accrual | If birthday is selected, the employee will accrue the set number of hours on the birthday set on their employee record.
If recurring period is selected, all employees will accrue the set number of hours on a set schedule; weekly, bi-weekly, or monthly. |
| Hours Accrued | Fixed number of hours to be accrued on the selected date. |
| Start Accruing | Employees will begin accruing hours a set number of days after their hire date. Note: This setting is only used for recurring period configurations. |
| Calendar Year End Date | Date that accrued hours for a recurring period will expire each year. |
Additional Policy Settings
| Setting | Notes |
| Negative Balance | Determines if employees can request more time off hours than they have accrued. When enabled, employees will be able to submit time off requests that will result in a negative accrual balance. |
| Maximum Balance | The maximum balance of hours an employee can have before they stop accruing additional hours. When left blank, there is no maximum balance the employee can accrue. |
| Tenure Bonus | When enabled, the fixed accrual hours and/or maximum balance for the employee can be increased based on their tenure with the company. Tenure is configured as the number of worked years since the employee's hire date. For each level of tenure bonus, the fixed accrual hours must be increased. Increasing the maximum balance is optional. Multiple levels of tenure bonus can be configured. |
| Carryover | If enabled, employees' current accrual balances will be carried over on the date of accrual each year. Otherwise, their current balances will expire. The percentage of the employee's balance and maximum hours to carry over can be defined. Carried-over hours can be set to expire after a set number of days. |
| Pay Out Expired Hours | If enabled, when an employee's accrued hours expire, earnings associated with the rule will be added to the DSS. |
Learn how to create an accrual rule for a 'fixed date' type policy here.