Time Off can use one of three different calculation methods to accrue year-to-date benefits.
For each attendance plan, the Calculation Method is specified on the General tab of the Attendance Plans Detail page.
The calculation method can be one of the following types:
The Accrual method accrues time on a daily basis.
Example: An employee receives 80 vacation hours per year. Because time is earned on a daily basis, 80/365 (80/366 in a leap year) equals 0.22 hours earned per day. Thus, the employee working for your company accrues 0.22 vacation hours every day. Fifty days into the year, the employee has accrued eleven hours of vacation time (50 x 0.22).
Note: If Accrual is the Calculation Method on the Attendance Plans Details page, Year is automatically selected for Accrual Period.
The Lump Sum method gives employees a lump sum of accrued time at regular intervals.
Time Off allocates the lump sum at the beginning of the selected interval. You can choose to allocate time (set the Accrual Period) by the week, month, quarter, or year. The type of plan year and the selected accrual period determine how lump sums are allocated. Also, the seniority levels specified for the plan determine the amount of time employees receive in each lump sum allocation.
- If the attendance plan year is Fiscal with a start date of July 1 and the lump sum period is Year, Time Off allocates a lump sum to each employee on the start of the fiscal year. The year closes on June 30 and available time is carried over to the next year. On July 1, they receive their lump sum allocation for the new fiscal year.
- If the attendance plan year is Annual and the lump sum period is Year, Time Off allocates a lump sum to each employee on the start of the calendar year (January 1). The plan year closes on December 31 and available time is carried over to the next year. On January 1, they receive their lump sum allocation for the new year.
- If the attendance plan year is Anniversary and the lump sum period is Year, Time Off allocates a lump sum to the employee on their start date. The plan year closes one day prior to their start date and available time is carried over to the next year. On the first day of their new anniversary year, they receive their lump sum allocation for the new year.
- If the attendance plan year is Rolling 12-month (only used for FMLA leave plans), the calculation method defaults to lump sum. When you initially add this type of FMLA leave plan to an employee, the system calculates their default eligibility for FMLA leave. For hours-based attendance plans, the system uses the Hours / Units value (from the employee's Current Pay page) to determine the number of FMLA Leave hours the employee can take during the 12-month lookback period. For days-based attendance plans, the system uses 60 days and assumes a five-day work week.
The system calculates the FMLA leave time (eligibility) only when the plan is added to the employee the first time, although you can change it at any time. The calculation depends on the Absence Units, which was specified on the Attendance Setup page when the employer was set up in your enterprise; see Setting up employers for Time Off.
-
When Absence Units is Hours,
Accrued = (pe.p_normunit * V) / 52 * 12Where Pe.p_normunit is the hours/units from the employee's Current Pay page
and V is the value associated with the pay frequency (W = 52, B = 26, S = 24, M = 12).This formula converts the hours/units to an annual amount (2080), divides this amount by 52 (weeks in the year), and multiplies the quotient by 12 (FMLA weeks) to derive the number of hours available for the employee’s FMLA (eligibility).
-
When Absence Units is Days,
Accrued = 60This assumes a workweek is five days.
Select his method if the attendance plan does not accrue any time for the employees.
The purpose of a non-accruing plan is to only track and accumulate absence transactions. When you set up an attendance plan with no accrual method, Time Off sets both the time available and the year-end eligibility to zero and only tracks time taken.