Basics of Benefit Accruals

 

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The basic rules of benefit accrual are as follows:

Benefit hours can accrue in a variety of ways based on the information entered in Payroll Options and Benefit Schedule Maintenance.

Expand/Collapse item  In Payroll Options:

  • Benefit hours can be based on the annual limit amount (available all at once after a possible delay period) or on an accrued basis (where benefit hours are available as they are accumulated over time). The accrual rate is determined by the benefit schedule associated with the employee.

    In either case, hours should be accrued at a rate that will bring the accrued hours to the annual limit by year end. This is needed to properly compute carry-over hours at the end of the year.

  • Carry-over and/or used hours can be applied to an annual limit, so that the sum of the hours accrued plus the carry-over hours minus the hours used cannot exceed the annual limit.

 

Expand/Collapse item  In Benefit Schedule Maintenance:

  • The accrual method determines at what interval accruals are to be made.

  • The rate method can be based on a fixed multiplier (accrual rate) or a table of accruals, allowing up to 20 steps based on dates from hire or anniversary.

  • The delay period can delay the start of accrual of benefit hours by 1 to 999 days after the hire date. Carry-over hours and hours based on an annual limit are not subject to this condition.

  • The eligibility waiting period provides an additional delay after benefit hours have accrued. A waiting period of 1 to 12 months before the accrued hours become available for use can be entered. Carry-over hours and hours based on an annual limit are not subject to this condition.

  • Eligibility hours are not available, regardless of benefit hours accrued or hours eligible based on an annual limit, until 1 to 12 months after the hire date. All hours (carry-over hours and hours based on a limit or accrual) are subject to this condition.

For more information, see Benefit Accruals


 

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