Setting Up for Accruing on Accruals

Employees might be entitled to earn or accrue vacation or sick time even while they are being paid vacation or sick time. You can set up an earning/deduction that calculates an accrual while the accrual itself is paid out on a paycheck.

An example of setup for accruing on accruals

The steps below demonstrate how to set up your records so that your employees accrue vacation when you pay out vacation on a timecard.

You can “accrue on accruals” only if the accrual uses the Percentage Of Base or the Hours Per Hour Worked as the Employee Calculation method.

1. Open Payroll Setup > Earning/Deduction Codes.
2. Using the Earning/Deduction Codes window, create the accrual for vacation by entering a code and description (for example, VAC2 and Vacation).
3. For Category, select Accrual.
4. On the Basic Information tab, set the Employee Calculation Method field to Percentage of Base.
5. Click Add to add the record.
6. After you have created the accrual code, go to the Calc. Base tab, and in the Earning column of the Base Earnings Include section, enter the same accrual code. In this example, you would enter VAC2.
7. On the Pay tab of the Employee Payroll window, assign VAC2 to the employee.

Now, when you calculate payroll, vacation accrues for the employee as specified in the VAC2 record. When you pay out vacation on a timecard using the VAC2 code, vacation also accrues as specified in the VAC2 record.

After adding and assigning the accruals

Verify that you have set up the accruals and employee record correctly:

• From Payroll Setup Reports, print the Earning/Deduction Codes report.
• From Payroll Employee Reports, print the Employee Information report.