Creating an accrual policy

Access the Accrual Policy Setup Wizard

Navigate to Setup > Policies > Accrual Policies.
Click Add.

3. The Accrual Policy Wizard slide-out will open up.

Step 1: Basics

Set up accrual policy basics
- Accrual code: Choose a short code name
- Accrual description: Choose a clear and descriptive name.
- Assign policy: New hire filter—automatically apply this policy to all new hires; select 'All New Hires' from the dropdown. You can also choose a custom filter or leave it blank to assign the policy manually to each new hire.
Additional settings (optional)
- Select the accrual information you would like displayed: This is the information that employees will see on their pay stub.
- Use the rehire date: For employees who were terminated and then rehired, use the rehire date rather than their original hire date.

Step 2: Waiting period

Accrual waiting period: This duration is the time between an employee's hire date and the date they begin accruing time off.
- In most cases, the waiting period is 30 days, but the duration can vary by company.
- To set a waiting period for new hires before they can start accruing time off, enter the number of days.
- If no waiting period is required, set the value to 0.
Request waiting period: This is the time between an employee’s hire date and the date they become eligible to use their accrued time off.
- Many companies have a waiting period of 90 days, but the deadline can vary by company.
- To set a waiting period for new hires before their accrued time off becomes available to use, enter the number of days.
- If no waiting period is required, set the value to 0.

Step 3: Rollover options

Accrual period reset option: This procedure determines the timing of the start of a new accrual period.
- You can decide whether to carry over OR pay out some or all of an employee's unused time off from the previous period.
- You can also choose to let it expire.
- Most companies have their accrual periods reset annually, but the timing can vary by company.
Select from the dropdown:
- It's continuous; it never resets
- At the end of each calendar year, on December 31st
- On the employee's hire date anniversary
- Annually, on a specific date of a specific month
- On the last day of each quarter
- On a specific date each month
- On the last day of every month
Rollover options: This setting determines how you roll over, pay out, or expire any leftover time off.
*Note* In the accrual rates configuration, you can specify how much time to roll over or pay out (all or some).
- Roll over to the next accrual period
- Payout at the end of each accrual period
- Expires at the end of the period
Rollover sequence: This guide outlines the procedure for handling accruals when they occur on the rollover day.
- Roll over eligible hours first, then accrue new hours for the period (recommended)
- Accrue all eligible hours for the designated period first, then add any applicable rollover to the balance

Step 4: Accruals

Accrual Rate: Define how time is earned (e.g., per # of hours worked, or at a set frequency).
If accrual rates vary by tenure, position type, or department, you can configure multiple accrual rules.
- Fixed amount: Select this option if you want employees to receive a fixed number of hours on a recurring basis.
  - Fixed accruals determine how much time off an employee earns at a set frequency.
  - In the next step, you can choose the frequency.
    On the last day of each quarter
    On a specific day each month
    On the last day of every month
    Annually, on the 1st day of every year
    Annually, on the employee's hire date anniversary
    Annually, on a specific day of a specific month
- Hourly: Select this option if you want employees to accumulate hours proportionate to the hours worked during each pay period.
  - Choosing this option will require additional setup for salaried employees.
  - Select the calculation method:
    Calculate using the hours on the employee’s time card (recommended)
    This method calculates accruals based on the hours recorded on the employee's timecard for the current pay period. The hours used for accrual are drawn directly from the time worked during the ongoing pay period.
    Calculate using the hours on the employee’s previous check
    This method calculates accruals based on the paid hours drawn from the previous payroll period's hours.
  - Select earning codes: Choose the earning code(s) from the dropdown that will accrue time under this policy.
    This means that all hours worked under the selected earning codes will accrue time off at the rates specified in this policy.

Add rate:
- You must add at least one accrual rate before proceeding.
- Rate user filter: Selecting a user filter will apply the appropriate accrual rates to employees based on their filter group.
  - If no filter is applied, the rate will apply to all employees.
- Complete:
  - Employee length of service
  - Accrual type (If fixed, then it's dynamic based on the accrual frequency. If hourly, then it's always X hours accrued for X hours worked)
  - Enter the maximum hours an employee can have accrued in their balance at any given time. If they reach this max, they will need to use time off before they can accrue more. If there is no maximum, enter 0.
  - Enter the maximum hours an employee can accrue within an accrual period. If there is no maximum, enter 0.
  - Enter the maximum hours an employee can roll over at the end of each accrual period. If there is no maximum, enter 0.
  - Enter the maximum hours an employee can accrue during the waiting period. Upon reaching this limit, the system will stop adding hours until the time off becomes eligible for use. If there is no maximum limit, enter 0.
- Carryover exclusion option: This option is if you don’t want hours carried over from a previous period to count towards the maximum allowed balance for the next period.

Step 5: Summary

Review all settings for accuracy.
Click Finish and Save to finalize the policy.
Assign it to employees so they can start accruing time.

Step 6: Assign to employees

Select the employee(s) to assign to the newly created policy.
Click Confirm changes to assign the policy to your employees.

Assigning employees to an accrual policy

Step 1: Assign employees

Go to: Setup > Policies > Accrual Policies.
Click the person icon to assign employees.
Choose employees to assign to the policy.
Optional: Choose how you want accruals to be calculated for employees added to this policy.

To start accruals from today onward or update an employee’s balance, leave today’s date.
To calculate accruals retroactively, select a past date or use the employee’s last anniversary date.

Retroactive accruals will only apply to newly added employees in this policy. Balances for employees already assigned to the policy will not be affected.

Step 2: Save & confirm

Review employee assignments.
Click Confirm changes to assign the policy to your employees.

Manually adjust employee balances

Open the assigned employee list.
Select an employee and update the balance by clicking on the balance amount and changing it.
The accrual history logs any balance changes.
- Example: Adjusting from 40 to 50 hours logs a +10-hour admin update.