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Automate Accrual Earnings with Accrual Rules Enabling PTO Accrual Tracking

Example Accrual Rule Settings

Common accrual rule examples.
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Brian Zurawski
23 Sep, 2026 - Updated 19 days ago
PTO Accruals

Example Accrual Rule Settings

Three commonly used accrual rules, configured start to finish.

These examples walk through three accrual rules that most companies can adapt to their own policy.

Example 1: 32.00 Hours of Sick Per Year

This rule gives employees 32.00 hours of Sick time at the start of each year on January 1st. Time cannot be carried over from year to year, and the maximum balance is capped at 32.00.

First, create the rule and configure the basic settings. In this example we chose to prevent negatives and assign the rule by default to the Sick pay code.

Basic settings for the yearly sick rule

Next, edit the rule.

Editing the yearly sick rule

Now configure the Hours to Earn, Maximum Accrual, Carryover Amount, and Maximum Balance.

Hours to earn settings for the yearly sick rule

Example 2: 1 Hour of Sick for Every 40 Hours Worked

This rule gives employees 1 hour of Sick time for every 40 hours worked. It starts on their hire date, up to 40 hours can be carried over from year to year, and the maximum balance is capped at 40.00.

First, create the rule and configure the basic settings. Again we chose to prevent negatives and assign the rule by default to the Sick pay code.

Basic settings for the hourly sick rule

Next, edit the rule.

Editing the hourly sick rule

Now configure the Hours to Earn, Maximum Accrual, Carryover Amount, and Maximum Balance.

Hours to earn settings for the hourly sick rule

Example 3: 40.00, 80.00, or 120.00 Hours of Vacation Based on Seniority

This rule gives employees 40, 80, or 120 hours of Vacation time on their anniversary, based on length of service. Hours cannot be carried over from year to year.

  • 1 year = 40 hours
  • 2 years = 80 hours
  • 5 years = 120 hours

First, create the rule and configure the basic settings. In this example we chose to prevent negatives and assign the rule by default to the Vacation/PTO pay code.

Basic settings for the seniority vacation rule

Next, edit the rule.

Editing the seniority vacation rule

Now enable Accrual Levels to configure different earned hours based on length of service.

Enabling accrual levels

Edit the existing level and add new levels as needed.

Editing the first accrual level

Add the next level for the 1st year anniversary, or 12 months.

Adding the 12 month accrual level

Add a level for the 2 year anniversary, or 24 months.

Adding the 24 month accrual level

Finally, add the level for the 5th year anniversary, or 60 months.

Note: TimeTrakGO creates the ending months automatically based on the last level added. In the image below only 12, 24, and 60 months needed to be entered. Years 3 and 4 use the same amount as year 2.

The finished set of accrual levels

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