Software Details

Accrual

What's Accrual?

Accrual is the act of an employee earning time off to be used in the future.

A simple example: After a year at a company, an employee earns two weeks of paid vacation, with the vacation accruing with each bi-weekly paycheck. The two weeks of vacation equals 80 paid hours, and there are 26 pay periods in a year. Therefore, the employee earns 3.0769 hours of paid vacation with each paycheck (80 divided by 26).

In the TimePilot Central 5 software, some Transaction Types can be assigned accrual policies so an employee's earned Vacation time, paid time off, Sick Time, etc., can be calculated and reported. Accrual policies are set up when creating (or editing) a Transaction Type. To see an employee's accrued hours, click the "Reports" tab on the left side of the screen, then, under "Administrative Reports," choose either "Accrual Calculation" or "Accrual Summary Report."

Setting up an accrual policy can be confusing and depends on your company's policies. Here's how to do it:

1. Click the "Setup" tab on the left edge of the TimePilot Central screen.
2. At the top of the screen, click the "Transaction Type" tab.
3. To add an accrual policy to a Transaction Type, click the type to display its properties. If accrual is available for that type, you'll see a "Create Accrual Policy" button.

It's best illustrated by an example: In the Accrual Policy setup below, for the first two years at a company, an employee will accrue 1.5384 hours of Paid Time Off (PTO) every week for the first two years of employment. From years two to five they will accrue 2.3076 hours per week, and 3.0769 hours per week in years 5 to 20. Accrued time is limited to a fixed number of hours per year and expires on the anniversary of the employee starting at the company. The employee's start date must be entered in their Employee Profile's "Optional" screen.

Each of these parameters can be modified to be meet your policy.