Updating the Employee Record for Time-Off Management and Payroll

Important:

This topic applies to you if you use SuitePeople U.S. Payroll in your NetSuite account.

After you create time-off rules in your time-off plans, you must assign a time-off plan to each of your employees. If some of your time-off plans include accruals based on hours worked, you must set up those accruals on the employee record.

Assigning a Time-Off Plan to an Employee

Use the following procedure to assign a time-off plan to an employee.

To assign a time-off plan to an employee:

Go to Lists > Employees > Employees.
Beside an employee, click Edit.
In the Time-Off subtab, select a plan from the Time-Off Plan list.
In the Start Date for Time-Off Calculations field, enter the date for time-off calculations. The date is used to calculate the number of days that this employee is entitled to time off. It is based on the minimum and maximum tenures set within the time–off plan. If there is no value specified in this field, this employee cannot be assigned to a time-off plan.
Click Save.

Adding Payroll Items to the Employee Record

To ensure payroll items associated with a time-off type appear on employees’ pay statements, you must add the payroll items to each applicable employee record.

Important:

Payroll items that accrue based on hours worked require additional setup. For more information, see Setting up Accruals Based on Hours Worked On the Employee Record for Payroll.

To add payroll items to the employee record:

Go to Lists > Employees > Employees.
Beside an employee, click Edit.
Click the Payroll subtab, and then click the Accrued Time subtab.
In the Sick/Vacation Time list, select a payroll item.
Click Save.

When a payroll item is associated with a time-off type that accrues based on a fixed amount, the accrual appears on the employee's pay statement. It does not appear in the Accrued Hours field on the Accrued Time subtab.

Setting up Accruals Based on Hours Worked On the Employee Record for Payroll

You must set up accrual rates for payroll items that accrue based on hours worked on each applicable employee record.

To set up accruals based on hours worked for an employee:

Go to Lists > Employees > Employees.
Beside an employee, click Edit.
Click the Payroll subtab, and then click the Accrued Time subtab.
In the Sick/Vacation Time list, select a payroll item that accrues by hours worked. The Accrues Based On field is set to Hours Worked (NetSuite U.S. Payroll)).

For example, you might have associated a time-off type with a payroll item called PTO - Vacation.
In the Accrued Hours field, enter a beginning balance if the employee has accrued time that is not in the system.

After the beginning balance is set, the system keeps track of this total.
In the Accrue As list, select Per Hour Worked.

Warning:
Selecting an option other than Per Hour Worked in the Accrue As list could result in inaccurate accrual balances on the employee’s pay statement.
In the Accrual Rate field, enter the number of hours this employee accrues for each hour worked (for example, 0.04).
In the Monetary Rate field, enter the cost per hour of the accrued time.
Depending on whether your time-off policy allows carryover, do one of the following:
- If you do not allow employees to carry over unused time off, check the Reset at Year End box. At the end of each calendar year, NetSuite sets the total accruals to zero and begins calculations again.
- If you allow employees to carry over unused time off, do not check the Reset at Year End box.
If your company sets a limit for accrued time, in the Maximum Hours field, enter the maximum number of hours that can be accrued.
Click Save.

When a payroll item is associated with a time-off type that accrues based on hours worked, note the following. The employee’s accrual appears in the Accrued Hours field and on the pay statement.