Set Up Benefit Schedules

Benefit schedules are set up to define different benefit accrual policies. In the following procedure, assume the following:

Your company benefit policy provides 2 weeks of vacation pay, 5 days of sick pay accrued on regular hours worked, an additional 4 personal days.
The above benefit hours are accrued starting at the beginning of the year for all employees who have 0 to 5 years with the company.
The benefit hours become available after completion of a 90-day waiting period. For more information, see Benefit Accruals.

To set up benefit schedules

Select Payroll Setup menu > Payroll Options.
On the Main tab, in the Hours in a Work Year field, type 2080. For more information, see Payroll Options - Fields.
Go to the Additional tab.
In the Accrual Benefit Description field, type Personal.
In the Accrual Report Display Option field, select Hours to display the accrual in hours on checks and on the Benefit Accrual Report.
Select the Round Benefit Hours/Days to Whole Numbers check box to round the display of accrued hours/days to whole numbers on checks and on the Benefit Accrual Report.
Select the Reset Employee Benefit Limits at Year End check box to automatically reset all employees hired at mid-year to the normal benefit limit for their applicable benefit schedules.
In the Base Benefit Availability On field, select Accrual so that reports and forms show only the Benefit hours that have been "earned."
In the Base Benefit Accruals on Date Of field, select Hire so that the probationary period-after-hire date can be defined in Benefit Schedule Maintenance.
In the Hours to use for Benefit Limit field, select Accrued+Carry Over-Used so that carry-over and used hours have an effect on the benefit hours that can be accrued based on the employee's limit.
Click Accept.
Select Payroll Setup menu > Earnings Code Maintenance.
Create earnings codes for regular, vacation, sick, and personal hours. For more information, see Earnings Code Maintenance - Fields.
Select the All Benefit Types check box for each of these earnings codes.

In this example, company policy states that benefits cannot be accrued on overtime hours. When an employee uses any vacation, sick, or personal hours, the hours used must be entered in Payroll Data Entry with the appropriate earnings codes, and these benefit-type earnings codes should accrue benefits in the same way as regular hours.
Select Payroll Setup menu > Benefit Schedule Maintenance.
Create a benefit schedule to set up the accrual methods, hours per year (used to calculate the accrual rate and default employee accrual limits), and carry-over allowances for all three benefit types.

Company policy allows employees to carry over a maximum of one week of vacation, and no carry-over is allowed for either sick or personal time. For more information, see Benefit Schedule Maintenance - Fields.

The benefitschedules are set up.