Examples of Accrual Setups

Assume that:

• Employees do not accrue vacation time per pay period, but instead receive a flat amount of 15 vacation days (120 hours) at the start of every new accrual year, regardless of the number of service years.
• There is no limit to the number of vacation days that can be accrued or carried over.

In such a case, it does not matter whether you select the Calc Max. Carry-over based on Remaining Balance option.

Your table on the Employee tab of the Earning/Deduction Codes window would look like this:

Through Service Year	Beginning	Increment	Max. Accrual	Max. Carry-over
99	120.00	0.00000	999,999.00	999,999.00

If employees are allowed to accrue only up to a certain number of hours (for example, 240 hours), then you would enter 240.00 in the Max. Accrual field.

Assume that:

• Employees do not accrue vacation time per pay period, but instead receive a flat amount of 15 vacation days (120 hours) at the start of every new accrual year, regardless of the number of service years.
• Employees can accrue up to 120 hours at any one time.
• Employees are not permitted to carry over any unused vacation days.

In such a case, it does not matter whether you select the Calc Max. Carry-over based on Remaining Balance option.

Your table on the Employee tab of the Earning/Deduction Codes window would look like this:

Through Service Year	Beginning	Increment	Max. Accrual	Max. Carry-over
99	120.00	0.00000	120.00	0.00

This example illustrates a situation where:

• Employees can carry over the unused portion of vacation accrued during the current year, up to a specified maximum carry-over. (The company they work for allows them to roll over some of their vacation hours into the new period but encourages the use of most of it as needed breaks from the work world.)
• Employees can also carry over any unused vacation hours accumulated from past years.

Setting Up the Table

Through Service Year

Beginning

Increment

Maximum Accrual

Maximum Carry-over

Your table on the Employee tab of the Earning/Deduction Codes setup window would look like this:

Through Service Year	Beginning	Increment	Max. Accrual	Max. Carry-over
5	0.00	10.00	240.00	40.00
10	8.00	15.00	360.00	60.00
99	16.00	20.00	480.00	80.00

In summary, employees in the example given who have up to five years of service with the company accrue three weeks (120 hours) of vacation in a year. Of the three weeks they accrue, they must use two within each year or lose them, as they are allowed to carry over only one week (40 hours) per year.

Although these employees may eventually accrue up to six weeks (240 hours) of unused vacation time, their maximum annual carry over of one week means that it would take a minimum of six years for an employee to reach the maximum unused accrual ceiling. By that time, however, the employee’s maximum unused accrual ceiling would have increased to 9 weeks (360 hours) according to the Through Service Year 10 bracket of the accrual schedule.

Note that employees with more than five years of service receive an additional 8 hours (or 16 hours, if more than ten years), which is added after the maximum carry-over is considered. However, the result cannot exceed the maximum accrual.

This example illustrates a situation where, regardless of the employee’s total remaining balance at the end of the accrual year, the employee is not permitted to carry over any unused hours beyond the specified maximum carry-over.

Assume the same values entered in the Through Service Year, Beginning, Increment, and Maximum Carry-over fields as in Example 3.

In Example 4, you would set the following:

• Select the Calc Max. Carry-over based on Remaining Balance check box. Selecting this option tells the payroll program to compare the maximum carry-over value with the employee’s total remaining accrual balance, and carry over the lesser of the two.
• You would most likely set your Maximum Accrual values differently than Example 3. You should set them so that employees continue to accrue up to their yearly entitlement, plus the maximum carry-over. For example, for the first Through Service Year (5), you would set the maximum accrual to at least 160 (that is, 120 hours entitlement, plus 40 maximum carry-over).

Your table on the Employee tab of the Earning/Deduction Codes window would look like this:

Through Service Year	Beginning	Increment	Max. Accrual	Max. Carry-over
5	0.00	10.00	160.00	40.00
10	8.00	15.00	240.00	60.00
99	16.00	20.00	320.00	80.00

In summary, employees in this example who have up to five years of service with the company accrue three weeks (120 hours) of vacation in a year. Of the three weeks they accrue, they must use two within each year or lose them, as they are allowed to carry over only one week (40 hours) per year.

However, unlike Example 3, these employees are more restricted in the number of hours they can carry over.

When you select the Calc Max. Carry-over based on Remaining Balance check box, the values you set in the Max. Carry-over column indicate the number of hours of the total remaining balance that can be carried over.

So, for example, employees in the first bracket (Through Service Year five) can carry over only 40 hours every year, and cannot carry over any other remaining unused hours that the employee may have accumulated. (In Example 3, the employee can carry over 40 hours of the total hours accrued during the current year, plus any remaining unused hours accumulated.)

Similarly, employees with more than ten years of service receive an extra 16 hours, so they may start the new accrual year with 96 hours (16 hours more than the specified maximum carry-over of 80).