Defining Hours Worked (by Months) Calculation Basis for PTO Benefit Plans

Define Hours Worked (by Months) as the Calculation Basis for PTO benefit plans with the Pay Codes for Hourly Accrual and Hours Worked panels.

To define hours worked (by months):

1. Click the Client menu.
2. From Client|Change, select PTO Benefit Plans.
3. Set Calculation Basis to Hours Worked (by Months) to view the Pay Codes for Hourly Accrual, Hours Worked, and Pay Period Accrual Threshold panels.

4. In the Pay Codes for Hourly Accrual panel, enter each Pay Code on which to base the accrual, such as regular pay. The Pay Description for the code displays. You must specify at least one pay code, or no paid time off accrues because the system cannot complete the calculations.
5. From Pay Period Accrual Thresholds, select a Pay Period (weekly, bi-weekly, semi-monthly, monthly).

6. Set an Accrual Threshold to limit the number of hours that employees can accrue for a specific pay period. If there is no limit on PTO accruals, leave this table blank.
7. Fill in the remaining Hours Worked fields as required.

Field

Description

Seniority Level

For each seniority level:

  1. Enter the After Months that employees must work to be eligible for each level of seniority of this PTO Benefit. You must set the After Months for the first Seniority Level to 0 or else the system will not accrue time correctly.
  2. In the Accrue Per Hours Worked field, enter the number of paid time off hours that employees enrolled in the PTO benefit plan will accrue for each hour either worked or paid (specified in the Hours Type drop-down).
  3. Enter the Max Per Week hours that employees can accrue.
  4. Enter the Max Per Year hours that employees can accrue.
  5. Enter the Accrual Stop Balance, which is the total number of hours per month/year that employees can accrue. Accruals stop at this amount.
  6. Enter the Maximum Carryover number of hours that can carry over from one year to the next.

Hours Type

Select either Worked or Paid. If no value is set, the system assumes hours worked.

Apply Current Hours Taken before applying Stop-Balance limits

Select to subtract the hours used before applying a stop-balance limit. If you do not select this option, the system disregards the hours already used.

Enforce Yearly Maximum By Pay Period

Select to enforce the yearly maximum for this type of accrual on a pay period basis (yearly max divided by pay periods per year). If you do not select this option, the system ignores the yearly maximum, but not at the pay period level.
8. Click Save.

Parent Topic

Defining PTO Benefit Plans