Assigning Multiple Accruals to an Employee

You can assign more than one accrual for vacation, sick, and banked time for each employee. This is convenient if you have an employee who accrues benefits at various rates while working in different departments.

An Example of Assigning Multiple Accruals

Suppose, for instance, Hugh Allen’s employment contract stipulates that while working in Department A, he shall accrue vacation at the rate of 8 hours per month, and that while working in Department B (a more stressful environment), he shall accrue vacation at the rate of 12 hours per month.

To be able to select the correct accrual conveniently when Hugh works in one department or the other, you set up accrual earnings for vacation earned in each department. Then, you assign both accrual earnings to Hugh’s employee record.

Because you pay out only one type of accrual at a time, you must turn on the Calculate? field for only one of the accruals in the employee record for any pay period.

The following steps illustrate how you might set up earning/deductions to accrue vacation for Department A and for Department B, and how you would assign them to Hugh’s employee record so that he accrues vacation at different rates:

1. Open Payroll Setup > Earning/Deduction Codes.
2. Set up earning/deduction record VACA for vacation earned while working in Department A, paying particular attention to the tabs and fields given here.
1. For this example, you would set the following fields on the Basic Information tab:
   • Category = Accrual
   • Type = Vacation
   • Employee Calc. Method = Hours per Frequency
   • Frequency = Monthly
2. For this example, the table on the Employee tab would show:
   • Through Service Year = 99
   • Increment hours = 8
3. Set up a similar record for vacation accrued in Department B (call it VACB), except that the Increment hours would be 12.
4. In Hugh’s employee record, and on the Pay tab, assign both vacation accruals.
5. In the Calculate? column, however, set to Yes the vacation accrual for the department in which Hugh is currently working. Set the other accrual to No. Otherwise, both accruals will be fully and simultaneously calculated for each period.

After adding and assigning the accruals