Benefit Accruals

The Payroll module calculates and reports the appropriate accruals automatically for three benefit types: vacation, sick leave, and an additional benefit defined by the user in Payroll Options.

Multiple benefit schedules can be created and maintained to accommodate different accrual rates, methods, and carry-over allowances for each of the three benefit types. The availability of benefits for employees can be determined based on either the annual limit or the amount accrued to date. This availability is set up in Payroll Options.

Posting benefit accruals to the general ledger

Benefit accruals are posted to the general ledger when you update the Daily Transaction Register. There are two ways benefits can be accrued:

Accrue benefit accrual hours using the Periodic Benefit Accrual Utility or Payroll Data Entry. A Benefit Accrual Report can be printed, which provides the detailed information necessary to create journal entries to update the benefit accrual general ledger accounts.
Post benefit accrual amounts to benefit accrual liability accounts defined in Department Maintenance. The amounts are calculated using the pay rate selected in Payroll Options and are posted to the employee's home department. Benefit amounts accrued to more than one department are combined and posted in summary format to the employee's home department. Benefit amounts are posted to the benefit accrual liability accounts only when using Payroll Data Entry; the Periodic Benefit Accrual Utility accrues only benefit hours and does not post to the general ledger.

Calculating carry-over allowances

The carry-over hours for an employee's benefit type are updated during year-end processing. The new carry-over hours are set to the hours accrued plus the carry-over hours minus the hours used, with a maximum of the carry-over allowance from the benefit schedule specified for that employee.

Example: Carry-Over (1998) = Accrued + Carry-Over (1997) - Used

For more information, see:

Basics of Benefit Accruals

Process Benefit Accruals

Benefit Accrual Rates and Methods

Determining Benefit Availability

Setting Benefit Accrual Limits

Set Up Benefit Schedules

Periodic Benefit Accrual

Perform Periodic Benefit Accrual