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The calculation of benefit accruals depends on the accrual method and accrual rate defined in Benefit Schedule Maintenance .

• The rate at which benefit hours accrue using the Hourly method equals the number of hours worked multiplied by the accrual rate.

• The rate at which benefit hours accrue using the Dollars Paid method equals the wages paid multiplied by the accrual rate.

• The rate at which benefit hours accrue using the Daily method equals the number of days worked multiplied by the accrual rate.

• The rate at which benefit hours accrue using the Weekly method equals the number of weeks worked multiplied by the accrual rate.

• The rate at which benefit hours accrue using the Check method equals the number of employee checks issued multiplied by the accrual rate.

• The rate at which benefit hours accrue using the Fixed method is equal to the number of hours per year. This amount is accrued automatically as a part of year-end processing.

 

Example - Accrual rates and methods

A salaried employee earns $24,000.00 annually, accrues 80 vacation hours per year, and is paid semi-monthly. The work year is defined as follows: 2080 hours, 260 work days, or 52 work weeks.

• The Hourly accrual method rate would be calculated as:
  Vacation hours per year divided by number of hours in a work year, or
  80 / 2080 = .0384615

• The Dollars Paid accrual method rate would be calculated as:
  Vacation hours per year divided by annual salary, or
  80 / 24000 = .0033333

• The Daily accrual method rate would be calculated as:
  Vacation hours per year divided by days worked, or
  80 / 260 = .3076923

• The Weekly accrual method rate would be calculated as:
  Vacation hours per year divided by weeks worked per year, or
  80 / 52 = 1.5384615

• The Checks accrual method rate would be calculated as:
  Vacation hours per year divided by number of checks issued per year, or
  80 / 24 = 3.3333333

For more information, see:

Benefit Accruals

Employee Pay Cycles

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