About Accruals

Vacation, sick, and compensatory/banked time are earnings/deductions with the category of accrual. You can base vacation and sick time accruals on a specified number of hours per hour worked or per frequency, or on a percentage of wages. If you base the accrual on hours per hour worked or a percentage of wages, you must specify the hours or the wages to use as the calculation base for the accrual.

After you determine the method and the number of hours or percentage for the accrual, the system increments employee vacation and sick hours or amounts automatically up to a specified maximum accrual.

The system also allows you to indicate the maximum number of vacation and sick hours or the maximum vacation and sick dollar amounts that may be carried over from one year to the next and the date on which the carry-over is to occur.

You can create sets of accrual information, including increment amounts or percentages, maximum accruals, and maximum carry-over amounts for up to ten service year periods.

You also choose whether the maximum carry-over value should apply to employees’ entire remaining accrual balance, or to only the unused portion of the amount or hours accrued during the year.

Compensatory/banked Time Accruals

You cannot select a calculation method or an increment amount or percentage for the accrual of compensatory/banked time. This is because employees accrue compensatory/banked time based on timecard entries. You can, however, set a maximum accrual and a maximum amount to carry over from one year to the next. 

Paying and Posting Accruals

You can pay an employee vacation, sick, or compensatory/banked time by entering a timecard. When you process vacation, sick, or compensatory/banked time pay, the system posts the Regular Expense account associated with the accrual. If you choose the Percentage Of Base calculation method for a vacation or sick time accrual, you also have the option of posting to the Employer Liability account the amounts of the accrued vacation or sick time.