Time Off Accrual Rates and Methods

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The calculation of time off accruals depends on the accrual method and accrual rate defined in Time Off Maintenance.

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

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

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

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

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

The rate at which time off 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:

Time Off Accruals

Employee Pay Cycles