Create a Vacation Accrual Plan
This example shows how to create an absence accrual plan for vacation leave. The following table summarizes key decisions for this scenario.
Decisions to Consider |
In This Example |
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Who is eligible for this plan? |
All workers |
What unit of measure should this plan use to process absences? |
Days |
What is the start date and length of the accrual plan term? |
Start on January 1 and restart the same day in the following year. |
When can workers start accruing leave time on the plan? |
1 month after hire date |
When can workers start using the leave time that they accrued |
2 months after hire date |
How much leave time can workers accrue in a term? |
Workers who belong to grade A and B accrue at the rate of 15 days each accrual term. They can carry-over 5 days to the next term. Workers who are grade C and D accrue at the rate of 12 days each accrual term. They can carry-over 2 days to the next term. |
Do you want workers to accrue time for the whole term at once or accrue in increments? |
Accrue time each pay period. |
What is the maximum leave time that workers can accrue? |
40 days |
Can workers use more time than their standard accruals during the plan term? |
Yes, up to 5 days |
How do you want to calculate cash disbursals of partial accrual balances at any time? |
50 percent of the salary amount determines the payment for a unit of absence. |
How do you want to calculate final balance payments for a terminated worker? |
The salary amount determines the payment of a unit of absence. |
Task Summary
To create the absence plan:
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Create two rate definitions and a payroll element.
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Create the absence plan.
Prerequisites
Before you create the absence plan, in the Absences work area:
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Use the Rate Definitions task to create two rate definitions that calculate payment of a unit of absence based on 50 percent and 100 percent of the salary amount.
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Use the Manage Elements task to create a nonrecurring element. Specify Absences as the primary classification and Vacation as the secondary classification in the Create Element dialog box, and complete the sections as shown in this table.
Section
Value
Absence Plan Details
Select Accrual Balances and Absences as the type of absence information to transfer to payroll.
Accrual Liability and Balance Payments
Select Yes for these questions:
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Calculate Absence Liability?
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Does this plan enable balance payments when enrollment ends?
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Does this plan enable partial payments of absences?
You must specify a rate for the liability calculation, which should be the same rate specified as the liability booking rate rule in Absence Management.
Absence Payments
Select the Reduce regular earnings by absence payment option for the following question:
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How do you want to reduce earnings for employees not requiring a time card?
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Creating the Rate Definitions
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In the Absences work area Tasks panel tab, click Rate Definitions.
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Click Create.
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On the Create Rate Definition page, complete the fields, as shown in this table.
Field
Value
Name
Unit Rate of 50 Percent Salary
Short Name
UR_50_PC_Salary
Legislative Data Group
Select your legislative data group.
Periodicity (Returned Rate Details section)
Bimonthly
Balance Dimension
Year to Date
Periodicity (Calculation section)
Bimonthly
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Click Create.
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On the Create Rate Contributors page, complete the fields, as shown in this table.
Field
Value
Balance Name
FIT Gross
Balance Dimension
Year to Date
Type
Actual
Add or Subtract
Add
Factor Rule
Value
Factor Value
0.50
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Click Save and Close.
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Repeat step 2 through step 6 to create another rate definition. Ensure that you provide the following key information, as shown in this table:
Field
Value
Name
Unit Rate of Salary
Short Name
UR_ Full_Salary
Factor Value
1.00
Creating the Absence Plan
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In the Absences work area Tasks panel tab, click Absence Plans.
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Click Create.
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In the Create Absence Plan dialog, complete the fields, as shown in this table.
Field
Value
Legislation
Select your legislation.
Plan Type
Accrual
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Click Continue.
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On the Create Absence Plan page, complete the fields, as shown in this table.
Field
Value
Plan
Vacation
Legislative Data Group
Select your legislative data group.
Status
Active
Plan UOM
Days
Type
Calendar year
Calendar
Select the first day of your plan term year. In this example, select January 1 of the current year.
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Click Save.
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Select the Participation tab, and complete the fields, as shown in this table.
Field
Value
Waiting Period UOM
Months
Duration
1
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Click Save.
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Select the Accruals tab, and complete the fields, as shown in this table.
Field
Value
Accrual Method
Incremental
Accrual Frequency Source
Person primary frequency
Accrual Vesting Rule
Elapsed period
Duration
2
UOM
Months
Ceiling Rule
Flat amount
Ceiling
40
Carryover Rule
Include in matrix
Negative balance allowed
Select
Negative Balance Limit
5
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In the Accrual Matrix section, create accrual bands, as shown in this table.
Sequence
Expression
Accrual Rate
Carryover Limit
1
([Person.Grade] = "A") OR ([Person.Grade] = "B")
15
5
2
([Person.Grade] = "C") OR ([Person.Grade] = "D")
12
2
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Click Save.
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Select the Entries and Balances tab, and complete the fields, as shown in this table.
Field
Value
Final Balance Payment Rate Rule
Select the Unit Rate of Salary rate definition that you created.
Disbursement Rate Rule
Select the Unit Rate of 50 Percent Salary rate definition that you created.
Absence Payment Rate Rule
Select the Unit Rate of Salary rate definition that you created.
Liability Booking Rate Rule
Select the Unit Rate of Salary rate definition that you created.
Transfer absence payment information for payroll processing
Select
Element
Select the element that you created as part of the prerequisite task.
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Review the information you entered in all the tabs.
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Click Save and Close.