The system calculates accruals for all plans on a calendar year basis. That is, on 1 January of each year, accruals for that year begin. Accruals for new hires can begin on their hire date, six months after their hire date, or at the beginning of the next calendar year.
For all plans, participants' payroll periods determine the frequency with which they accrue PTO. Employees on a monthly payroll accrue time each month, employees on semi-monthly payrolls accrue time twice each month, and so on. PTO accrual occurs automatically for each eligible plan participant on the last day of his or her pay period, independently of any payroll run.
For example, if employees on a semi-monthly payroll participate in a vacation PTO plan permitting the accrual of 84 hours per year, they accrue 3.5 hours on the last day of the year's first pay period, say 15 January. They then accrue another 3.5 hours on 31 January, another 3.5 hours on 14 February and so forth.
Because accrual plans use employees' payroll calendars to schedule accruals, the assignment of every employee participating in an accrual plan must include an assignment to a payroll.
See: Absence Management Setup Steps
With absence recording in place, you can then enter information for setup of the accrual plan itself. This information includes:
Length of Service and Accrual Amount Rules
Accrual Plan Setup Steps
Maintaining PTO Plan Records
Reviewing Employees' PTO Accruals