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The Payroll module calculates and reports accruals for three types of time off. You can enter a name for the three types in Payroll Options. The default name for the first two types are vacation and sick. There is no default name for the third type.

Multiple time off schedules can be created and maintained to accommodate different accrual rates, methods, and carry-over allowances for each of the three time off types. The availability of time off 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 time off accruals to the general ledger

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

• Accrue time off accrual hours using the Periodic Time Off Accrual Utility or Payroll Data Entry. A Time Off Accrual Report can be printed, which provides the detailed information necessary to create journal entries to update the time off accrual general ledger accounts.

• Post time off accrual amounts to time off 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. Time off amounts accrued to more than one department are combined and posted in summary format to the employee's home department. Time off amounts are posted to the time off accrual liability accounts only when using Payroll Data Entry; the Periodic Time Off Accrual Utility accrues only time off hours and does not post to the general ledger.

 

Calculating carry-over allowances

The carry-over hours for an employee's time off type are updated during year-end processing if Calendar Year is selected in the Reset Hours Based On field in Payroll Options. If Anniversary Date is selected, the carry-over hours are updated on the anniversary of the time off eligibility date entered in Employee Maintenance.

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 time off schedule specified for that employee.

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

For more information, see:

Basics of Time Off Accruals

Process Time Off Accruals

Time Off Accrual Rates and Methods

Determining Time Off Availability

Setting Time Off Accrual Limits

Set Up Time Off Schedules

Periodic Time Off Accrual

Perform Periodic Time Off Accrual