Creating a Time-Off Plan With Payroll

Important:

This topic applies to you if you use SuitePeople U.S. Payroll in your NetSuite account.

After you create time-off types and associate them with payroll items, you can create time-off plans. A time-off plan contains different time-off types and rules that you can assign to an employee. For example, a time-off plan could include vacation time, personal time, sick days, and bereavement days. The plan would have rules that specify how these types of time off accrue. You might have different plans for part-time employees than for full-time employees. You might have different plans for employees who are paid hourly and employees who are paid a salary. You can create as many plans as you need to fulfill the time-off policies of your organization. Each time-off plan also contains time-off rules. These rules define entitlement for a time-off type and how that time-off type accrues within the plan. It's important to understand the difference between accruals based on fixed amounts and accruals based on hours worked.

Accruals Based on Fixed Amounts and Accruals Based on Hours Worked

When Time-Off Management and Payroll are integrated, time-off accruals can be automatically calculated in one of two ways:

Fixed Amount Per Period	Hours Worked (NetSuite U.S. Payroll)
The system calculates accruals based on a fixed amount (weekly, bi-weekly, monthly, semi-monthly, or annually).	The system calculates accruals based on the hours an employee works. This type of accrual might be appropriate for users who are paid hourly.
Time-Off Management calculates the accruals. You add the payroll items associated with each time-off type to the employee record in the Payroll > Accrued Time subtab.	Payroll calculates the accruals.
When you run payroll, accrual amounts and balances from Time-Off Management are included on employees' pay statements for the period ending date. Time-off balances also appear accurately in the Time-Off portlet in the Employee Center.	When you run payroll, accrual amounts and balances from Payroll are included on employees' pay statements for the period ending date. Time-off balances also appear accurately in the Time-Off portlet in the Employee Center.
You'll need to add payroll items for these accruals to the employee's record in the Payroll > Accrued Time subtab. This way, the payroll items show up on employees' pay statements.	Set up payroll items for these accruals on the employee's record in the Payroll > Accrued Time subtab. For more information, see Setting up Accruals Based on Hours Worked On the Employee Record for Payroll.
Annual entitlement can reset at the start of any month.	Annual entitlement must reset at the start of January.
Employees can carry over unused time off, and you can set carryover expiry limits.	You can use the Accrued Time subtab on the employee record to specify whether employees can carry over unused time off, but you can't set carryover expiry limits.

Fixed Amount Per Period

Hours Worked (NetSuite U.S. Payroll)

The system calculates accruals based on a fixed amount (weekly, bi-weekly, monthly, semi-monthly, or annually).

The system calculates accruals based on the hours an employee works. This type of accrual might be appropriate for users who are paid hourly.

Time-Off Management calculates the accruals. You add the payroll items associated with each time-off type to the employee record in the Payroll > Accrued Time subtab.

Payroll calculates the accruals.

When you run payroll, accrual amounts and balances from Time-Off Management are included on employees' pay statements for the period ending date. Time-off balances also appear accurately in the Time-Off portlet in the Employee Center.

When you run payroll, accrual amounts and balances from Payroll are included on employees' pay statements for the period ending date. Time-off balances also appear accurately in the Time-Off portlet in the Employee Center.

You'll need to add payroll items for these accruals to the employee's record in the Payroll > Accrued Time subtab. This way, the payroll items show up on employees' pay statements.

Set up payroll items for these accruals on the employee's record in the Payroll > Accrued Time subtab. For more information, see Setting up Accruals Based on Hours Worked On the Employee Record for Payroll.

Annual entitlement can reset at the start of any month.

Annual entitlement must reset at the start of January.

Employees can carry over unused time off, and you can set carryover expiry limits.

You can use the Accrued Time subtab on the employee record to specify whether employees can carry over unused time off, but you can't set carryover expiry limits.

For each time-off type that you plan to use, decide which type of accrual works best with your time-off policies.

To create a time-off plan with payroll:

Go to Setup > HR Information System > Time-Off Plan > New.
In the Name field, enter a name for the time-off plan. This name appears wherever you need to select a time-off plan, such as the employee record. Name the plan so that you or someone else in HR can easily choose the right one for each employee.
Check the Days Available Includes Future Accruals for the Year box to included forecasted accruals through the end of the year. If you only want to include time off employees have accrued, leave the box unchecked.
From the Reset Annual Entitlement At the Start Of list, select the month when the entitlement period starts. The default setting is January.

Important:
For a time-off rule that includes a time-off type that accrues based on hours worked, set Reset Annual Entitlement At the Start Of to January.
If necessary, select a Subsidiary, Class, Department, or Location. You can assign this plan only to employees who are associated with the department, class, location, and subsidiary you set here. If you don't set a these fields, you can assign this plan to anyone.
Click Save.

Accruals Based on Fixed Amounts and Accruals Based on Hours Worked

To create a time-off plan with payroll:

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