Accrual policies offer many configuration options for the needs of different companies. Having so many options can easily make this policy type appear dense and overwhelming. To make it a little easier, we offer predefined accrual policies for many states and municipalities.
If you can't find your state or want to customize it for your company's needs, our Accrual Policy Wizard helps you define how employees earn time off based on hours worked or on a set schedule and manage rollover, usage eligibility, and employee assignment.
Create a new custom accrual policy
Navigate to Setup > Policies > Accrual Policies.
Click Add custom policy.
3. The Accrual Policy Wizard slide-out will open up.
Step 1: Basics
Accrual Code: Create a short code name.
Accrual Description: Use a clear and descriptive name.
Assign Policy (Optional): Choose “All New Hires” to automatically assign this policy to new employees or select a custom filter. Leave blank if you plan to assign manually.
Display on Pay Stub (Optional): Choose what accrual info employees can view.
Use Rehire Date (Optional): Enable this to use the rehire date instead of the original hire date when calculating accruals.
Step 2: Set Waiting Periods
Accrual Waiting Period: Number of days after hire before accrual begins (e.g., 30 days).
Request Waiting Period: Number of days after hire before accrued time can be used (e.g., 90 days).
Set either field to 0 if no waiting period is required.
Step 3: Configure Rollover Options
Accrual Period Reset Timing:
Options include: Calendar year-end, hire date anniversary, quarterly, monthly, or continuous (no reset).
Rollover Method:
Roll over, pay out, or expire unused hours.
Rollover Sequence:
Recommended: Roll over first, then accrue new hours.
Step 4: Define Accruals
You can define accruals using either fixed amounts or hourly accruals.
Fixed Amount Accruals:
Earn a set number of hours on a recurring schedule:
Options: Monthly, quarterly, annually, etc.
Hourly Accruals:
Earn time based on hours worked:
Choose a calculation method:
From the current timecard (recommended)
From the previous paycheck
Select the earning codes eligible for accrual.
Add Accrual Rate(s):
You must add at least one rate. For each rate, specify:
User filter (if applicable)
Employee length of service
Accrual type (fixed or hourly)
Maximums (balance, accrual per period, rollover, waiting period accrual)
Optional:
Carryover Exclusion: Prevent carried-over hours from counting toward future balance limits.
Step 5: Summary
Confirm all settings are correct.
Click Finish and Save.
Assign the policy to employees
Once the policy is saved, assign it to employees.
Assign employees
Go to Setup > Policies > Accrual Policies.
Click the person icon next to the policy.
Select employees to assign.
Optional: Retroactive accruals
To calculate accruals from a past date, select a custom date or the employee’s last anniversary date.
Retroactive changes only apply to newly added employees—not those already assigned.
Save & Confirm
Click Confirm Changes to finalize assignments.
Manually adjust a balance
Go to the assigned employee list.
Click on the balance amount to edit it.
Changes will be logged in the employee’s accrual history.
Remove an Employee from a Policy
In the employee list, click the trash can icon next to the employee.
Confirm removal (note: this deletes their balance and history for this policy).