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Plans for Accrual of PTO

Accrual plans permit eligible employees to accrue PTO (paid time off) each year as they work, to use for vacation or sick leave. Oracle HRMS has no restrictions on the number of plans you can set up, each with its own units of accrued time (hours or days) and its own rules.

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.

Accrual Plan Structure

Just as elements constitute the underlying structure of absence types, so they provide the structure of accrual plans. To set up an accrual plan, you first set up absence recording for the plan, including an element to hold information about absences taken under the plan.

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:

In response to the information entered for plan setup, the system generates three elements for the plan:

See Also

Accrual Start Rules

Length of Service and Accrual Amount Rules

Accrual Plan Setup Steps

Maintaining PTO Plan Records

Reviewing Employees' PTO Accruals

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