Understanding Methods of Counting Service Periods

There are two types of methods for counting service periods. The two hours methods, hours counting and hours equivalence, are based on the hours an employee works during a computation period. These methods require parameters for converting hours to service units. The elapsed time method is based on the time an employee works within a date range.

There are three methods of counting service periods:

• Elapsed time—Calculates an employee's service by measuring the time between two dates—for example, between the hire date and the termination date. The amount of service credited does not depend on the hours the employee works during the time period.

• Hours counting—Uses the actual number of hours an employee works in a computation period. Requires hours data provided by the hours consolidation process.

• Hours equivalence—Credits an employee with a specific number of hours, based on the time spent in a "service included" status.

There is a component for each method.