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The rate at which employees accrue time off and when that time off is available to them is based on settings and information entered in the following locations:

• The Time Off tab in Payroll Options
• Time Off Maintenance
• The Benefits tab in Employee Maintenance

 In Payroll Options:

• The selection in the Base Time Off Availability On field determines when time off is available to be used by employees.

  • If Limit is selected, the employee's time off hours are available all at once unless a wait period is established.

  • If Accrual is selected, the time off hours become available as they are accrued based on the time off code set up in Time Off Maintenance. An additional delay period can be established.

In either case, hours should be accrued at a rate that will bring the accrued hours to the annual limit by year end. This is needed to properly compute carry-over hours at the end of the year.

• You can specify whether hours carried over from the prior year count toward the annual limit and, if so, whether the hours used should be subtracted.

 

  In Time Off Maintenance :

• The accrual method determines at what interval accruals are to be made.
• The rate method can be based on a fixed multiplier (accrual rate) or a table of accruals, allowing up to 20 steps based on dates from the employee's eligibility or anniversary date.
• The delay period can delay the start of accrual of time off hours by 1 to 999 days after the eligibility date. Carry-over hours and hours based on an annual limit are not subject to this condition.
• The eligibility waiting period provides an additional delay after time off hours have accrued. A waiting period of 1 to 12 months before the accrued hours become available for use can be entered. Carry-over hours and hours based on an annual limit are not subject to this condition.
• Use the Eligibility Hours field to enter a delay in months past the eligibility date. All hours (carry-over hours and hours based on a limit or accrual) are subject to this condition.

The basic rules of time off accrual are as follows:

• Accrued hours = Hours accrued up to the present time (Calculated when Accrual is selected in the Base Time Off Availability On field in Payroll Options.)

• Limit hours = The maximum number of time off hours that an employee can accrue in a year. (Calculated when Limit is selected in the Base Time Off Availability On field in Payroll Options.)

• Carry-over hours = Unused hours carried over from the prior year
• Total hours = accrued or limit hours + carry-over hours
• Available hours = total hours - hours used
• Time off hours, regardless of whether they are based on accrual or an annual limit, are not eligible until any delays have expired.

For more information, see:

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