Setting up Accrued Time for an Employee

For each employee included in Payroll, you can set up accrued time by adding sick and vacation time payroll items to the employee record.

You may need to create earning payroll items for accrued time before you can select them for employees. For more information, see Payroll Items Setup.

Important:

If you use the Time-Off Management feature, see Updating the Employee Record for Time-Off Management and Payroll.

To set up accrued time for each employee:

  1. Go to Lists > Employees > Employees.

  2. Next to the employee's name, click Edit.

  3. Click the Payroll subtab, and then click the Accrued Time subtab.

  4. In the Accrued Time subtab, do the following:

    1. In the Sick/Vacation Time field, a payroll item for sick time, vacation time, or other paid time off (PTO) events.

      For example, you might have set up a payroll item called PTO – Vacation.

    2. If you are setting up accrued time for the first time for this employee, in the Accrued Hours field, enter a beginning balance.

      After the beginning balance is set, the system keeps track of this total.

    3. In the Accrue As field, select one of the following:

      • Lump Sums: Calculate accrual based on total hours for the year. Accrual occurs with the employee’s first payroll of the year and does not increase with subsequent payrolls.

      • Per Pay Period: Calculate accrual per pay period.

      • Per Hour Worked: Calculate accrual per hours worked. This includes overtime if the time was recorded.

    4. In the Accrual Rate field, enter the number of hours this employee accrues for the time period set in the Accrue As column.

      • If the Accrue As field is set to Lump Sum, the accrual rate should be the total number of hours per year.

      • If Accrue As is set to Per Pay Period, the accrual rate should be the number of hours the employee earns per pay period.

      • If Accrue As is set to Per Hour Worked, the accrual rate should be the amount of time off to accrue for each hour worked. For example, 0.04.

    5. In the Monetary Rate field, enter the cost per hour of the accrued time.

    6. To set the total accruals to zero and begin calculations again each calendar year, check the Reset at Year End box.

      Employees’ accrued time is reset when the period ending date is in the new year. Note the following about employees taking time off during a pay period that includes both the previous year and the next. The time is taken from their previous year’s balance, and then reset. If an employee's last paid date is blank, the accrued time is not reset.

    7. If your company sets a limit for accrued time, in the Maximum Hours field, enter the maximum number of hours that can be accrued.

    8. Click Add. Continue adding payroll items as necessary.

  5. Click Save.

Related Topics

General Notices