Contents x
    Creating an Accrued Policy Accrual Rule
    • 31 Oct 2024
    • 4 Minutes to read
    • Print
    • Dark
      Light
    • PDF
    Contents

    Creating an Accrued Policy Accrual Rule

    • Updated on 31 Oct 2024
    • 4 Minutes to read
    • Print
    • Dark
      Light
    • PDF
    Article summary

    This article reviews the steps for creating an accrual rule for an 'accrued' type PTO policy using the accrual rule wizard on the Labor Admin page. 

    Create an Accrued Policy

    Follow these steps to create a PTO accrual rule for an accrued policy: 

    Starting the Accrual Rule Wizard

    Click steps to expand for additional information and images.

    1) Navigate to the Labor Admin page.

    2) Click 'Create', then select 'Accrual Rule'.

    3) Enter a rule name for the accrual rule.

    This is used throughout the system as the 'Accrual Balance' name and will be visible to employees.

    Rule names must be unique.

    4) Select an earning type:

    • Unpaid

    • PTO

    • Sick

    • Vacation

    • Bereavement

    This is the earning type that will be added to the DSS when accrued hours are used.

    5) Click Continue to move to the next step.

    6) Enter an effective start date.

    This is the date that the rule will take effect. Employees assigned to this rule will not accrue hours prior to this date.

    7) Click + Add Effective End Date to add an end date to the rule. (Optional)

    8) Click Continue to move to the next step.

    9) Select the Accrued type.

    10) Click Continue to move to step 1 of the policy configuration.

    Step 1 - 'How do you want to set up your accrued time off?'

    Click steps to expand for additional information and images.

    1) Enter the number of days after an employee's start date (hire date) that must pass before the employee begins accruing hours.

    2) Select the hour increment that employees can use when requesting time off under this rule.

    None - Employees can request to use accrued hours in any increment, including partial hours.

    2 - Employees can request to use accrued hours in increments of 2 hours.

    4 - Employees can request to use accrued hours in increments of 4 hours.

    8 - Employees can request to use accrued hours in increments of 8 hours.

    3) Enter the number of days after an employee's start date (hire date) that must pass before the employee can use accrued hours.

    4) Enter the number of hours to be accrued and the for every X hours worked amount.

    Employees will accrue hours for each hour worked based on the accrual rate, which is calculated as:

    • Hours to be Accrued / Hours Worked

    Example:
    2 hours accrued per 40 hours worked
    Accrual Rate: 2/40 = 0.05
    Employees will accrue 0.05 hours per hour worked.

    5) If employees should also accrue on non-worked hours, enable the Accrue on Non-Worked Hours toggle.

    When enabled, selected 'non-worked' hours, such as hours associated with 'sick' earnings, are included when calculating an employee's total worked hours.

    6) If 'Accrue on Non-Worked Hours' is enabled, select the non-worked earning types that should accrue time off hours.

    When an employee has earnings associated with these earning types, the hours associated with them will be included in 'Worked Hours' for the purposes of calculating accrual hours.

    7) If employees should be able make requests that result in negative balances, enable the Allow Negative Balances toggle.

    When enabled, employees will be able to submit time off requests that will result in a negative accrual balance.

    8) Review configurations, then click Next Step.

    Step 2 - 'Maximum Balance and Tenure Bonus'

    Click steps to expand for additional information and images.

    1) Enter the maximum balance an employee can accrue in a year.

    2) If the accrual rate or maximum balance for employees should increase based on their employment tenure, enable the Tenure Bonus toggle.

    3) Enter the Years Worked threshold.

    When the employee's hire date is this number of years in the past, the tenure bonus will be applied when they accrue hours.

    4) Enter the accrual rate bonus as the number of additional hours to be accrued.

    The 'per X hours worked' amount cannot be adjusted and will match the amount set in the previous step.

    Increasing the accrual rate is required for each level of tenure bonus.

    5) Enter the number of hours to increase the maximum balance by. (Optional)

    Increasing the maximum balance will increase the number of hours the employee can accrue in a single year.  

    6) To add an additional level of tenure bonus, click + Add Another Tenure Bonus, then follow steps 3 - 5 for it.

    7) Review configurations, then click Next Step.

    Step 3 - Carryover Rules

    Click steps to expand for additional information and images.

    1) Enter the expire date that accrued balances will either expire or be carried over on.

    2) If accrued balances should carry over, enable the Carryover Balance toggle.

    3) Enter the percentage of accrued hours that can be carried over for an employee.

    4) Enter the maximum number of hours that can be carried over for an employee.

    5) If unused carryover hours should expire after a set amount of time, enter the number of days employees can use the hours before they expire.

    If unused carryover hours should not expire, leave this field blank.

    6) If earnings should be added to the DSS for the employee when hours expire, enable the Pay Unused Hours toggle.

    7) Review configurations, then click Complete.

    8) Click one of the following to navigate to the desired page:

    Close - Return to the Labor Admin page.

    Assign to Employees - Navigate to the Employees page.

    View Accrual - Open the new rule in an Accrual Rule sidesheet.

    Was this article helpful?
    What's Next