Accrual (Hours based on Hours)

Accruing vacation puts money aside for an employee to be paid while taking time off. In this article we will go over setting up vacation accrual in hours - based on hours worked, or a fixed amount per year.

1. Add the accrual payroll instruction 

• Under the employee profile, click on the Payroll Instructions tab.
• Click Add Payroll Instruction either above or below the grid.
• From the drop down, select the Vacation Hours Earned (Accrued) benefit.

The system default value in hours is 0.04 (equal to two weeks a year). If this is the correct amount, click Save to complete the setup.

If the employee's vacation rate is different, change the value to the correct amount after clicking the Override Default Properties check box. i.e. 0.08 for four weeks a year.

If you want the employee to accrue a set number of hours within a year, regardless of how many hours they work:

• Click the Override Default Properties check box.
• Under Default Value enter the correct fixed amount i.e. enter 2.5 for 2 and 1/2 hours earned each pay.
• Change the Formula to say [InputValue]

Click Save to complete the accrual setup.

2. Pay out vacation

• Click on Add Payroll Instructions either above or below the grid.
• From the drop down, select and add the following payroll instruction:

If the employee is paid by salary, add Vacation Hours Taken (Salary).

If the employee is paid hourly, add Vacation Hours Taken (Hourly).

Click Save to complete the payout setup.