Paid Time Off Rates screen

Use the Paid Time Off Rates screen to define accrual rates and limits for paid time off types, including balance limits, carryover limits, and accrual limits. Only one accrual rate can be effective for a paid time off type at a time.

To open the Paid Time Off Rates screen, click Employees > Setup > Deductions & Fringes > Paid Time Off Rates in the All Tasks pane.

Here are just a few examples of what you can do with paid time off rates:

Example 1: Vacation Time

Let's say you want to enter rates for a paid time off type of Vacation. Employees are paid weekly and accrue vacation time based on the number of hours worked. You want employees to accrue paid time off based on their tenure, as follows:


Length of Employment	Annual PTO Accrual
Under 2 years	10 days (80 hours)
2 to 5 years	15 days (120 hours)
Over 5 years	20 days (160 hours)

To calculate the accrual rate per hour, divide Annual PTO Accrual hours by the total annual hours. So, for a new employee who works 40 hours a week:

In addition, you want to do the following:

Limit the number of vacation days an employee can accrue to their annual accrual rate.
Limit the number of vacation days carried over into a new year to 5.

In this case, set the following fields on the General tab:

Calculation Method = H - Rate Per Hour

Calculation Bracket Basis Year = Employee PTO Start Date

Carryover Basis Year = Employee PTO Start Date

Default Probation Period Months = 0

Then set the following fields on the Calculation Brackets tab:


After Month	Rate or Hours	Threshold On	Balance Limit Hours	Carryover Limit Hours
0	0.03846	No Threshold	80	40
24	0.05769	No Threshold	120	40
60	0.07692	No Threshold	160	40

Example 2: Holiday Time

Let's say you want to enter rates for a paid time off type of Holiday.

Employees receive 56 holiday hours (7 holiday days) per calendar year. Employees hired in the middle of the calendar year (that is, any new employee hired after January 1) receive the remaining number of holidays based on their start date. Holiday time is not carried over into a new year.

In this case, set the following fields on the General tab:

Calculation Method = F - Flat Amount every check

Calculation Bracket Basis Year = Calendar

Carryover Basis Year = Calendar

Default Probation Period Months = 0

Then set the following fields on the Calculation Brackets tab:


After Month	Rate or Hours	Threshold On	Yearly Accrual Limit	Yearly Accrual Limit Hours	Carryover Limit	Carryover Limit Hours
Partial First Year	0	No Threshold		56		0
0	56	No Threshold		56		0

These settings actually give no holiday hours to employees hired mid-year. For these employees, you must manually calculate the remaining number of holiday hours based on their start date and enter this amount on the Adjust Paid Time Off screen. For example, using the typical United States holidays, an employee hired on June 1 would receive the 5 remaining holidays, so you would enter an adjustment of 40 hours accrued holiday time. An employee hired October 1 would receive 3 remaining holidays, so you would enter an adjustment of 24 hours accrued holiday time.

Typical United States holidays are:

New Year's Day in January
Memorial Day in May
Independence Day in July
Labor Day in September
Thanksgiving (2 days) in November
Christmas in December

Alternatively, you could create seven paid off types, one for each number of holidays an employee would get in their first year. For each code, define the partial first year rate for the remaining holidays in the year. You would then assign a holiday paid time off type to an employee based on the employee's start date.

Example 3: Sick Time

Let's say you want to enter rates for a paid time off type of Sick.

Employees accrue sick time at a fixed rate per paycheck, up to 40 sick hours (5 days) per calendar year. Sick time is not carried over and employees must be employed for 3 months before they begin accruing sick time.

To calculate the accrual rate for a weekly paycheck, multiple the number of sick days by the hours per day and divide by the number of paychecks per year: