Calculating Maximum Carry-Over Based on Remaining Balance

For the accrual, this check box lets you specify how payroll calculates an employee’s carry-over amount (or hours) for a new year. It tells payroll which component to compare with the Maximum Carry-Over field. The calculated carry-over amount (or hours) will vary, depending on the method chosen.

Select Maximum Carry-Over

• If you do not want the employee’s carry-over amount (or hours) to exceed the value specified in the Maximum Carry-Over field of the Earning/Deduction Codes window.
• In this method, the payroll system compares the employee’s remaining balance at accrual Year-End (that is, the entire unused amount or hours) with the Maximum Carry-Over field.
• This means that the employee’s starting balance for a new accrual year cannot exceed the Maximum Carry-Over field (unless a number is specified in the Beginning column of the Earning/Deduction Codes setup window).

Do not select Maximum Carry-Over

• If you allow employees to carry over the unused portion of the amount (or hours) accrued during the year, up to the specified maximum carry-over, plus any unused amounts (or hours) carried over from the previous year.
• In this method, the system compares only the employee’s unused portion of the amount (or hours) accrued during the year with the Maximum Carry-Over field, and also carries over any unused amounts carried over from the previous year, up to the maximum accrual.
• This means that the employee’s starting balance for a new year can exceed the amount specified in the Maximum Carry-Over field.

For both methods

• After carry-over is calculated, any value you entered in the Beginning column of the accrual’s setup record, is added to the carry-over amount to determine the employee's starting balance for the accrual, up to the maximum accrual.
• Accrual amounts are subject to the amount specified in the accrual’s Maximum Accrual field. When the employee’s accrual amount reaches the maximum accrual, the employee stops accruing.