Setting up an Accrual Based on a Fixed Amount per Period
Accruals based on a fixed amount are always set up in time-off rules.
When time-off types accrue by a fixed amount per period:
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Time off accrues after a fixed amount of time: weekly, biweekly, semi-monthly, monthly, or annually.
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You set an annual entitlement for the time-off type. For example, employees might be entitled to two personal days in a year.
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Accruals are calculated based on the annual entitlement divided by the number of accrual periods in a year.
For example, time off accrues semi-monthly (or 24 times a year). The annual entitlement is 15 days. Therefore, the accrual amount per period =15 ÷24.
For more information about how accruals are calculated, see Understanding How Accruals are Generated when Multiple Time Rules are in One Time-Off Plan
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Time off can accrue proactively (employees accrue time off for the period they are about to work). It can also accrue retroactively (employees accrue time off for the period they have already worked).
To set up an accrual based on a fixed amount:
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In the time-off rule, under Accrual Method, check the Automatically Accrue box.
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From the Accrues Based On list, select Fixed Amount Per Period.
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From the Accrual Type list, select whether time off accrues proactively or retroactively:
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If employees accrue time off for the period they are 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:
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Full Amount for Accrual Period - Employees’ first accrual is the full amount specified for the accrual period. It is applied either on their start date or the first day they are eligible to accrue based on the rules defined in their plan.
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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 is applied either on their start date or the first day they are eligible to accrue based on the rules defined in their plan.
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Zero - Employees’ first accrual takes place on the next regularly scheduled accrual date.
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If employees accrue time off for the period they have already worked, select Retroactive.
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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 occur on the first day of the year/month for proactive accruals. They occur on the last day of the year/month for retroactive accruals. Semi-monthly accruals occur on the first and the 15th day of each month for proactive accruals. They occur on the 15th and the last day of each month for retroactive accruals.
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In the Entitlement field, enter the number of days or hours that employees earn each year.
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In the Entitlement Unit field, specify whether the entitlement is in days or hours.
The Accrual Amount and Accrual Amount Unit fields display the accrual rate based on your selections.
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To enable an accrual limit, check the Set Accrual Limit box, and then do the following:
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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.
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Click Save.
Continue to Setting up Balance and Carryover Limits in a Time-off Rule.