Define Time Off Policy Accrual Rules

Administrators select an accrual rule for each time off policy.

1. Select the accrual rule type:
   • Banked Hours – Time off is accrued based on a percentage of specified payroll data divided by specified payroll data. For example, an employee who has greater than a year of seniority accrues three percent of the employee's current gross salary divided by the hourly rate.
   • Hours Average – Time off is accrued based on hours worked divided by a number. For example, an employee who has greater than a year of seniority at the beginning of the policy year is granted a number of hours based on the hours worked in the previous year divided by 52.
   • Hours Per Week – An employee earns time off hours each pay period or month according to the number of hours the employee works per pay period. For example, an employee who is scheduled for 30 hours a week accrues 1.5 hours of time off. Or, an employee earns time off hours according to the total number of hours the employee worked that week, month, or pay period. For example, an employee who worked 30-59 hours in a pay period accrues 1 hour of time off.
   • Length of Service – An employee earns time off hours for each pay period or is granted time off hours at the beginning of the policy year based on seniority. For example, an employee who has 0-5 years of seniority at the beginning of the policy year is granted 10 days of time off. This rule is not based on payroll information as the other rules are.
   • Percentage of Earnings – Accrual is based on the employee's pay; the calculation for each pay period is based on a percentage of the employee's earnings in dollars or hours. For example, an employee, entitled to two weeks of paid vacation, accrues vacation pay at four percent of eligible earnings based on the accrual calculation. Eligible earnings are earnings paid to the employee that qualify to have vacation pay calculated based on them (for example, regular and overtime pay).
   • Prorated – Accruals can be prorated (amount of time worked during a pay period, divided by the amount of time in a pay period, multiplied by the number of hours or days). For example, an employee with 0-4 years of seniority accrues 160 hours times the prorated formula (periodic scheduled hours divided by number).
2. Select the accrual frequency (Yearly, Monthly, Periodically, Weekly, or Daily). Yearly and Monthly frequencies accrue on the first day of the year or month. Periodic frequencies accrue on the last day of the pay period. Weekly frequencies always accrue on Monday.
3. Select the seniority unit (Days, Months, or Years).
4. In the Rule section, enter the rules for the time off policy; select Add Row to add a new row. Be sure the numbers do not have a gap (for example, from 0 to 2 years and then from 2 to 4 years, not from 3 to 4 years).
5. Select the seniority date and the accrual seniority.
6. Select the policy for the rollover.
7. Select Next to go to Limits.