Setting up an Accrual Based on a Fixed Amount With Payroll

To set up an accrual based on a fixed amount:

1. In the time-off rule, under Accrual Method, check the Automatically Accrue box.

2. From the Accrues Based On list, select Fixed Amount Per Period.

3. From the Accrual Type list, select whether you want to accrue time proactively or retroactively:

   • If employees accrue time off for the period they're about to work, select Proactive. Next, set the Minimum Tenure. If minimum tenure is set to zero, in the Opening Balance for New Employees field, choose one of the following:

     • Full Amount for Accrual Period - Employees’ first accrual is the full amount for the accrual period. It's applied either on their start date, or the first day they are eligible to accrue based on the rules defined in their plan.

     • Prorated Amount for Accrual Period - Employees’ first accrual is a prorated amount based on the number of working days remaining in the accrual period. It's applied either on their start date, or the first day they are eligible to accrue based on the rules defined in their plan.

     • Zero - Employees’ first accrual takes place on the next regularly scheduled accrual date.

   • If employees accrue time off for the period they've already worked, select Retroactive.

4. In the Accrual Frequency field, choose when time off accrues.

   If you select Biweekly or Weekly as the accrual frequency, set the day of the next accrual. This determines the calendar day on which the accrual is applied.

   Note:

   Annual and monthly accruals happen on the first day of the year or month for proactive accruals, and on the last day for retroactive ones. Semi-monthly accruals happen on the 1st and 15th for proactive, and on the 15th and last day for retroactive.

5. In the Entitlement field, enter how many days or hours employees earn each year.

6. In the Entitlement Unit list, select whether the entitlement is in days or hours.

   The Accrual Amount and Accrual Amount Unit fields display the accrual rate based on your selections.

7. To enable an accrual limit, check the Set Accrual Limit box, then do the following:

   In the Accrual Limit field, enter the maximum number of days that employees can accrue. For example, if you enter 15 days, your employees stop accruing time when they reach this limit. Employees start accruing time again when they use some of their accrued time.

   The Accrual Limit Unit field displays the accrual limit rate based on your selections.

8. Set up how you want to manage carryover balances:

   • To deduct unused time off from an employee’s balance, clear the Allow Employees to Carry Over Unused Time-Off box.

   • To allow carryover, check the Allow Employees to Carry Over Unused Time-Off box. Then do the following:

     • To limit how much unused time off gets added to the next year’s balance, check the Limit the Amount of Time-Off Employees Carry Over box. Then do the following:

       1. In the Maximum Carryover field, enter the maximum amount of time off that each employee can carry over.

       2. In the Maximum Carryover Unit field, select the unit of time for the maximum carryover field.

          For example, employees are entitled to carry over 5 days. Enter 5 in the Maximum Carryover field, and then select Days in the Maximum Carryover Unit field.

     • To expire carried over time off after a specific period of time, check the Expire Unused Carryover box. Then select which month the carried over time off should expire.

       For example, if you select March, employees have up until the end of March to take this type of time off. If they do not book the time before it expires, it is removed from their plan and they can't use it anymore.

       Note:

       If you select a month in the past, the expiry won't happen until next year. If you change the expiry month from a future to a past date (or vie versa), the change won't take effect until the following year—unless the current expiry month is in the future and you change it to another future date, in which case it can take effect this year.

     • Check the Reset Negative Balances to Zero at Year End box to prevent employees from carrying over negative balances at the end of the year for this time-off type.

     • To display expiry notification messages to employees in the Employee Center, check the Show Balance Expiry box. Notifications appear in the Employee Center when employees have time off that expires in the current month or next calendar month.

9. Click Save.

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