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 Overview

Use this procedure to process and maintain time off accrual information.

To perform periodic time off accrual, see Perform Periodic Time Off Accrual.

 

To set up time off accruals

1. Select Payroll Setup menu > Payroll Options.

2. Click the Time Off tab and complete the fields related to time off accruals.

3. If you want to post time off accrual amounts to the general ledger by department, complete steps a and b. If you want to recognize time off expenses at the time the hours are used by employees, and not post amounts to the general ledger by department, proceed to step 4.

1. Select Payroll Setup menu > Department Maintenance.

2. On the Main tab, enter the general ledger liability and expense account numbers to which you want to post the time off accruals for each department.

   The accruals are not posted to the general ledger unless both liability and expense account numbers are entered. For more information, see Department Maintenance - Fields.

4. Select Payroll Setup menu > Earnings Code Maintenance.

5. Create earnings codes to use for the time off types that you are using. In the Type of Earnings field, select time off type to identify each earnings code.

   For more information, see Earnings Code Maintenance - Fields.

6. For each earnings code, in the Time Off Types to Accrue area, select the types to accrue. You can select any combination of time off types. If an earning should not accrue any time off, clear these check boxes.

   You should accrue time off for all regular earnings codes, as well as the earnings codes created for the time off types.

7. Select Payroll Setup menu > Time Off Maintenance.

8. Create a separate time off code for each type of accrual method. For example, a first-year employee might accrue only 40 hours of vacation time, compared to a second-year employee who accrues 80 hours of vacation. For more information, see Time Off Maintenance - Fields.

   Note Time off hours do not accrue if the Hours/Year field is set to zero.

9. Select Payroll Main menu >  Employee Maintenance.

10. On the Benefits tab, assign the appropriate time off code to each employee. For more information, see Employee Maintenance - Fields.

11. In the Time Off Hours grid, adjust the annual limit as needed. If zero is entered in the Annual Limit field, no time off will be accrued.

12. Click Accept.

Your system is now set up to process time off accruals.

To process time off accruals

1. Select Payroll Main menu > Payroll Data Entry.

2. Use the appropriate time off earnings codes to record the hours used for time off. For more information, see Payroll Data Entry - Fields.

3. Select Payroll Main menu > Time Off Register. Print the Time Off Register to provide an audit trail of time off accrued.

   If you post time off accruals to the general ledger by department, use the Time Off Register to verify the accrual posting amounts. For more information, see Time Off Register - Fields.

4. Complete payroll processing and print, verify, and update the Check Register and Daily Transaction Register. The time off accrual amounts are posted when the Payroll Check Register is updated.

Print the Time Off Accrual Report at least once every quarter to provide a recap of time off hours accrued for each employee.