We're here to help you manage Paid Time Off (PTO) effectively for your team. Below, you'll find detailed information on accruing time off, handling negative balances, and understanding carryover rules.
Accruing Time Off and Negative Balances
Automatic Negative Balances: If an employee uses more time off than they have accrued, their balance will automatically go negative.
Manual Adjustments: Admins with the necessary permissions can manually set a negative balance in the employee's details screen under the time off section.
Regular Payroll Accrual: Time off only accrues during regular payroll periods. For off-cycle and bonus payrolls, you'll need to manually update the time off balance.
Custom Accrual Periods: Policies with custom accrual periods are not tied to payroll, and grants occur on the first day of the new accrual period.
Mid-Pay Period Hires: Time off does not accrue for new hires during a mid-pay period. You'll need to manually add the appropriate accrual amount. Accrual starts in the first full pay period.
Scenario: If an employee starts on June 15 and your pay period is June 1 - June 30, you'll need to manually add accruals for June. Starting July 1, time off will accrue automatically.
Negative Time Off Balances / Borrowing Time Off
Allowing Negative Balances: You can set policies to allow employees to request more time off than they have available, resulting in a negative balance.
Prohibiting Negative Balances: If not allowed, employees cannot submit a request that would result in a negative balance. However, admins can still record time off, resulting in a negative balance.
Note: Changing the policy to prohibit negative balances will not affect existing pending time off requests.
When a new accrual period begins:
Time Off Grants: Employees receive their entire time off amount if the policy has a fixed accrual amount.
Hours Carryover: Unused hours carry over to the new period, with any applicable limits.
Yearly Limits Reset: Employees can begin accruing hours again if they reach the max limit in the previous period.
Fixed Accrual Types:
Throughout the Year: Employees accrue time off each pay period.
Beginning of Year: Employees accrue their entire amount at the start of the calendar year.
Anniversary Accrual: Employees accrue their entire amount in the pay period of their hire-date anniversary.
Carryover Balances and Rollovers
Carryover Limits: Set a carryover limit for unused time off from one year to the next. Not all states allow balance resets, so be sure to check state mandates.
Fixed Amount Policies: Choose between no carryover, a limit, or allowing all hours to carry over.
If you have any questions or need further assistance, our support team is here to help!