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Example Accrual Rule Settings Enabling PTO Accrual Tracking

Automate Accrual Earnings with Accrual Rules

How to Automate Accrual Earnings with Accrual Rules
Brian Zurawski
22 Feb, 2024 - Updated 5 months ago

Automate Accrual Earnings with Accrual Rules

What are Accrual Rules?

Automatic accrual rules for PTO earnings define how employees earn paid time off (PTO) throughout the year. These rules are typically set by companies and outlined in their employee handbook or benefits policy. Accruals can happen Yearly, Monthly, Pay Period, Hourly and Hourly % 

Creating an Automatic Accrual Rule

Accrual rules can be defined within the PTO Accrual Tracking Feature.  Once created, these rules can be assigned to Pay Codes to automatically earn PTO time such as vacation based on length of service or Sick time based on hours worked. 

To create a PTO Accrual rule, click the Settings button for the PTO Accrual Tracking Feature.

Next, click the Tab titled "Accrual Rules"

Next, Click the "Add New Accrual Rule" button as seen below. 

Accrual Types

Accrual Types define the accrual year. The accrual type is used when counting taken hours or for carryover amounts. 
Anniversary - This accrual year starts on the user's Hire date. 
Fiscal - This accrual year starts on January 1st. 

Accrual Update Period

Accrual Update Periods define when the employee should receive their PTO time. 
Yearly - Updates the accruals once a year, either on the anniversary or the Fiscal Start of January 1st.  
Monthly - Updates the accruals each month.
Pay Period - Updates the accruals with every pay period (Weekly, Bi-weekly, Semi-Monthly, or Monthly)
Hourly - Updates the accruals based on hours worked. For example, 1 for every 40 hours worked. 
Hourly % - Updates the accruals based on a percentage of hours worked. For example, 2.5% of every hour worked. 

Prevent Negatives

When enabled, Prevent Negatives will prevent the user's available PTO balance from dropping below 0.  This is done by preventing additional PTO requests, preventing the approval of pending PTO requests that may cause the user to drop below 0, or by preventing manual time card entries that may cause a negative PTO balance. 

Assign Default Pay Codes

This setting will link the new Accrual Rule to an existing Pay Code. This prompt to assign this rule to all existing users as well as all new hires. This is an optional setting and can be configured individually for each user. For example, if part-time employees are not entitled to Vacation time, it can be turned off later for those employees. 

When prompted, Selecting Yes, Assign Users will automatically assign this rule to all users. 

Editing the new Accrual Rule to the Hours to Earn.

Once the rule has been created, you can edit the rule to configure how many hours should be Earned.

Setting Hours to Earn, Maximum Accrual, Maximum Carryover, And Maximum Balance

Hours to Earn - This is the number of hours to Earn, based on the Accrual Update period.  For example, 32.00 Hours per Year
Maximum Accrual Per Year -
This is the Maximum Earned Hours during the Accrual Year. This setting will often match the Hours to Earn amount, however in some accruals such as Hourly % (Percentage) the Maximum Accrual Per Year Might be set to cap the accrual from earning.
Maximum Carryover Per Year - This is the Maximum Carryover amount from Accrual Year, to Accrual Year.  Set as 0 when NO Carryover is allowed.
Maximum Balance - This is the Maximum Balance Allowed for the Accrual.  It will take the Earned, Carryover, and Opening Balances and will never exceed this amount. 

Use Accrual Levels?

This optional setting is required when the Hours to Earn is different based on the length of service. For example, Vacation rules that are based on seniority, 
Example Accrual Levels
1 Year   = 40 Hours of Vacation
2+ Years = 80 Hours of Vacation
5+ Years = 120 Hours of Vacation
10+ Years = 160 Hours of Vacation 

When enabled, multiple levels per Accrual Rule can be configured based on Lenth of Service (Months)

Additional levels can be added or edited as seen here. 

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