PTO and other accumulators (Vacation, Sick Pay etc.) Setup Examples

1) PTO (paid time off) to accumulate 3 hours a month.

You will need two codes for personal pay, one to accumulate the three hours a month with and a second one to pay these hours as the employee takes them.

The code to accumulate the three hrs/month will look like this:

Click the "A" button next to the limit and enter 3.00 in the Payroll Month Limit field -- This will prevent an employee from having more than 3.00 hours PTO accumulated in any given month.

The code to pay them for their PTO is already in the system as code 26, you can change the description if you like.

If an employee earns $12.00 per hour and you give them 8 hours of their PTO, they will receive $96.00. If are accumulating dollars instead of hours, e-mail CCS the specifics of what you need to accumulate and we can help you with the setup.

Both of these codes are Category P. This is what "links" them together. Once you have these codes setup, give your employees the number of hours currently available to them via the first code on their paycheck, you will then see the YTD PTO available on their check stub.

You will need to close this companies checks in order to update the PTO accumulator totals in CCS.

2) Vacation - Giving a set amount on January 1st (use it or lose it policy).

At the beginning of each year, you will go into the employee file, go to the Payroll tab for any employee, and click the "C" button to the right of the Accumulated Vacation field (this is a Clear button). This brings up a window that will allow you to set all employees accumulated vacation amounts to 0.00

Once the Accumulated Vacation field has been reset to zero, you will add a Vacation Code on everyone's first paycheck to give them their available vacation. When this amount is added to a paycheck via a code you will see the amount of Vacation available on each paycheck.

The setup for your code will be as follows:

Save the code without any value in the Amount, Limit or Balance fields. Then check the Global checkbox, before processing the first payroll of the year and the code will come up on everyone's check, at that point just fill in the number of hours they are receiving at that time. After the payroll is complete, unclick the global check box as you will not need to see this code again for a year.

When someone takes some of their Vacation time, use code 25 to give them their Vacation time. In order to see the updated value of your employees Vacation time (in the Employee file or on the accumulators report) it will be necessary to "Close" your paychecks.

Note: Instead of clearing all accumulators to zero, you can reduce them to a certain fixed amount which may be very useful for you if all (or definable groups) of your employees will start the year with a maximum number of vacation, sick, holiday or personal hours/dollars.

3) A Standard Vacation Accumulation for Hourly Employees

This accumulator is for hourly employees, it can be used for salaried employees as long as you enter hours (or set their default hours in the employee form) in conjunction with their salaried amount.

This accumulator will accrue on both Regular time and Overtime.

Please set up the Vacation Accumulator for Hourly employees earning 40 hours of vacation annually as follows:

If you have a limit on the amount of time someone can accumulated annually, enter this in the Advanced Limits box ("A" to the right of the Limit field.)

Please set up the Vacation Accumulator for Hourly employees earning 80 hours of vacation annually as follows:

If you have a limit on the amount of time someone can accumulated annually, enter this in the Advanced Limits box ("A" to the right of the Limit field.)

Please set up the Vacation Accumulator for Hourly employees earning 120 hours vacation annually as follows:

If you have a limit on the amount of time someone can accumulate annually, enter this in the Advanced Limits box ("A" to the right of the Limit field.)

After you have your codes created please add the applicable code to each employees Earnings Pick List. The codes should appear on the paycheck entry screen when you do the next payroll and calculate automatically.

NOTE: The paychecks must be closed in order for accumulator type codes to be updated. The above amounts were calculated as follows.

Where did these figures come from?

40 hrs Vacation - 2040 workable hours. 40/2040=.0196 or 1.96%

80 hrs Vacation - 2000 workable hours. 80/2000=.04 or 4%

120 hrs Vacation - 1960 workable hours. 120/1960=.06122 or 6.122%

4) Vacation Accumulator - If the employee works at all in a Payperiod, they receive the full amount of accrual for that Payperiod

This is also very useful for salaried employees where, the number of hours worked is not a consideration of their vacation earned in a period.

To set up a Vacation Accumulator where the employee accumulates vacation time even if they work only a 1/4 hour for the entire paycheck, use the following setup.

This example assumes on a weekly payroll.

Why does this work? When the Paycheck creation logic calculates the value for the vacation accumulator it will multiply the number or hours worked by 1000 yielding a very large number, even if they worked only a 1/4 hour, the product will be 250 hours; however, this number will always be reduced to .78 due to the limit we set. (51 weeks * .78 hours earned per week = 40 hours per year.)

These numbers are derived by taking the # hours to be accumulated (40) and dividing by the # of workable weeks (51).

Use the same setup for 2 weeks, change the description and change the limit to 1.54.

Use the same setup for 3 weeks, change the description and change the limit to 2.31.

Note simply change the limit as required when your Payperiod is not weekly. For instance use a Limit of 3.2 for a twice monthly payroll with employees earning 80 hours vacation annually. 80 hours divided 25 workable periods (They will not work an entire period) = 3.2 hours per payroll period.

Once your codes are created add the appropriate code to the applicable employees via their Earnings Pick List. The codes should appear on the paycheck entry screen when you do the next payroll. From that point on, they should show on the earnings side of the paycheck.

Please note, there must be some hours (a positive amount greater than zero) on the paycheck or no accumulation will occur, this is for both hourly and salaried employees.

Paychecks must be Closed in order for accumulator type codes to be updated.

All of the above examples show vacation, simply change the category to "S" for a sick pay accumulator, "H" for a holiday accumulator and "P" for a PTO or Personal accumulator.

5) Sick Pay Accumulator (work 1 hour/ accrue toward one hour).

This accumulator is for hourly employees (work 1 hr/accrue toward 1 hr). This accumulator will accrue on both Regular time and Overtime, and is limited to calculate on the first 40 hours worked each Payperiod which for this example is assumed to be weekly.

Please set up the Sick Accumulator for Hourly employees earning 16 hours of sick pay annually as follows:

If you have a limit on the amount of time someone can accumulated annually enter this in the Advanced Limits box ("A" to the right of the Limit field.) The large balance ensures that the balance of this code never reaches zero (reaching zero would disable the code).

2080 hours in a year, less 16 hours not worked is 2064 workable hours. 16/2064 = .0078 -- Note, you can make this percentage higher, to account for vacation, personal time off etc., to insure the get there 16 hours in a year, just limit the 16 hours for the year via the advanced limits dialog.

Please utilize code 27 to give the employee sick pay on their paycheck. Code 27 should be set up as follows:

If a person had taken a sick day (and had accrued enough sick time to be paid for 8 hours of sick pay), you would pay them via code 27 on the earning side of their paycheck, quantity of 8 which will yield a payment of 8 hours based at their regular rate of pay. When the payroll is Closed the accumulators will be updated.

Note: If you use the "Total to Date" (TTD) column (Advanced limits) in conjunction with an accumulator, then the current TTD will be calculated as follows:

Sum of all unclosed records + value in the employees accumulator.

For example: Given a Sick pay accumulator with an advanced limit of 100.00 hours in the TTD column., and an employee having accumulated Sick hours in the amount of 98.0 (as seen in their Employee file in the Accumulated Sick pay column), and further assume an unclosed paycheck in the current period (or previous period) with an entry of 1.25 hours of accumulated Sick pay. Then when the next check is generated for this employee, the Sick Pay accumulator will be automatically limited to .75 hours. (98 + 1.25 + .75) = 100.00