Understanding Calculation Methods

The Accrual method accrues time on a daily basis.

For example, an employee receives 80 vacation hours per year. Because time is earned on a daily basis, 80/365 (80/366 in a leap year) equals 0.22 hours earned per day. An employee working for your company accrues .22 vacation hours every day. Ten days into the year an employee has earned two hours and twelve minutes (2.20) of vacation time at a rate of .22 hours per day.

Note: The Accrual Period field on the Attendance Plans Detail page automatically changes to Year when you choose the Accrual calculation method.

The Lump Sum method gives employees a lump sum of accrued time at regular intervals.

Time Off allocates the lump sum at the beginning of the selected interval. You can choose to allocate time by the week, month, quarter, or year. The type of plan year and the selected accrual period determine how lump sums are allocated. Also, the seniority levels defined for the plan determine the amount of time employees receive in each lump sum allocation.

For example:

• If the attendance plan year is fiscal with a start date of July 1 and the lump sum period is year, Time Off allocates a lump sum to each employee on the start of the fiscal year. The year closes on June 30 and available time is carried over to the next year. On July 1, they receive their lump sum allocation for the new fiscal year.
• If the attendance plan year is annual and the lump sum period is year, Time Off allocates a lump sum to each employee on the start of the calendar year. The plan year closes on December 31 and available time is carried over to the next year. On January 1, they receive their lump sum allocation for the new year.
• If the attendance plan year is anniversary and the lump sum period is year, Time Off allocates a lump sum to each employee on their start date. The plan year closes one day prior to their start date and available time is carried over to the next year. On the first day of their new anniversary year, they receive their lump sum allocation for the new year.
• If the attendance plan year is rolling 12-month, the calculation method defaults to lump sum. The Rolling 12-month calculation method is used only for FMLA leave plans. When you initially add this type of FMLA leave plan to an employee, the system calculates their default eligibility for FMLA leave. For hours-based attendance plans, the system uses the Hours / Units value (from the Sage HRMS Current Pay page) to determine the number of FMLA Leave hours the employee can take during the 12-month lookback period. For days-based attendance plans, the system uses 60 days and assumes a five-day workweek.

Calculation details

The system calculates the leave time (eligibility) only when the plan is added to the employee the first time, although you can change it at any time. The calculation is as follows:

When Attendance Setup Absence Units = Hours

Accrued = (pe.p_normunit * V) / 52 * 12

Pe.p_normunit is the hours/units from the Sage HRMS Current Pay page. V is the value associated with the pay frequency (W = 52, B = 26, S = 24, M = 12). This formula converts the hours/units to an annual amount (2080), divides this amount by 52 (weeks in the year), and multiplies the quotient by 12 (FMLA weeks) to derive the number of hours available for the employee’s FMLA (eligibility).

When Attendance Setup Absence Units = Days

Accrued = 60

This assumes a workweek is defined as five days.

You can establish an attendance plan that does not accrue any time for the employees.

The purpose of a non-accruing plan is to only track and accumulate absence transactions. When you set up an attendance plan with no accrual method, Time Off sets both the time available and the year-end eligibility to zero and only tracks time taken.