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 Overview

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

In the following procedure, assume that your company time off 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.
• In Payroll Options, the Reset Time Off Hours Based On field is set to Calendar Year.

 

To accrue periodic time off accruals following the above example

1. Select Payroll Setup menu > Payroll Options.

2. On the Time Off tab, in the Allow Time Off Accruals From field, select Periodic Accrual Only. For more information, see Payroll Options - Fields.

3. Select Payroll Period End menu > Periodic Time Off Accrual.

4. In the Pay Cycles field, select Biweekly. Pay cycles are defined in Employee Maintenance.

5. In the Pay Method to Include field, select Salaried Employees Only.

6. In the Deduction Period field, select 1. The deduction period is assigned to the time off code in Time Off Maintenance.

7. In the Time Off Types To Accrue field, select All Time Off Types.

8. In the Starting Eligibility Date and ending Eligibility Date fields, accept the default range of January 01 to December 31.

9. 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.

10. Accept the default value of 1 in the following fields. These 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

11. Click Proceed to print the Periodic Time Off Accrual Register. After verifying the time off accrual hours for each employee in the selection, update the register.

The Periodic Time Off Accrual utility does not post time off accruals to the general ledger. Time off 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 Time Off Accruals From field in Payroll Options

  And...

• Defined both a liability account and an expense account for the time off type in Department Maintenance.