Perform Periodic Benefit Accrual

The Periodic Benefit Accrual utility allows you to calculate benefit accruals on a user-defined schedule. Benefit schedules are set up to define different benefit accrual policies.

In the following procedure, assume that your company benefit policy provides the following:

2 weeks of vacation pay
5 days of sick pay accrued on regular hours worked
4 personal days

Furthermore:

All time off is accrued at the beginning of the year for all salaried employees who have 0 to 5 years with the company.
Time off becomes available after completion of a 90-day waiting period.
All salaried employees are paid bimonthly.

To accrue periodic benefit accruals

Select Payroll Setup menu > Payroll Options.
On the Additional tab, in the Allow Benefit Accruals From field, select Periodic Accrual Only. For more information, see Payroll Options - Fields.
Select Payroll Period End menu > Periodic Benefit Accrual.
Click Print to display the Periodic Benefit Accrual Register window. In the Starting and Ending Employee Number fields, enter the employee range to accrue benefits. For more information, see Periodic Benefit Accrual - Fields.
In the Pay Cycles field, select Biweekly. Pay cycles are defined in Employee Maintenance.
In the Report Option To Print field, select Salaried Employees Only.
In the Deduction Period field, select 1. The deduction period is assigned to the benefit schedule in Benefit Schedule Maintenance.
In the Benefit Schedule Code To Accrue field, select the All check box. This benefit schedule was previously defined in Benefit Schedule Maintenance.
In the Accrue Based on Hire or Review Date field, select No Date Range. The employee review date and hire date are not part of the selection criteria.
In the Number of Hours field, type 173.33. The monthly hours worked is calculated as the sum of the number of work hours in a work year divided by 12.
Enter the default value of 1 in the following fields. The following fields refer to accrual methods other than the Hourly method used in this example.
Number of Dollars 1.00
Number of Days 1
Number of Weeks 1
Number of Checks 1

Click Proceed to print the Periodic Benefit Accrual Register. After verifying the benefit accrual hours for each employee in the selection, update the register.

The Periodic Benefit Accrual utility does not post benefit accruals to the general ledger. Benefit accruals are posted to the general ledger when you update the Daily Transaction Register if you have:

Selected either Periodic Accrual + Data Entry or Data Entry Only in the Allow Benefit Accruals From field in Payroll Options

And...
Defined both a liability account and an expense account for the benefit type in Department Maintenance.