Every business has its own rules when it comes to accruing time off. Fingercheck allows you to build as many accrual policies as needed to fit your staff. If you're an employer that gives your employees time off at the start of each year or at different intervals during the year, keep reading. If your employees accrue time-based on their hours worked, we'll be creating a help desk article for that soon. Let's walk through building a frequency-based accrual policy.
- Log onto your Fingercheck account and go to the “Setup” tab.
- From the drop-down menu on the top left of the page, select "Policies Menu."
- From the list that appears, click on “Accrual Policies” and then on the blue “Add” button to begin building your policy.
- So, as always, let's go through how to fill out the fields of your policy. Start creating your policy by naming it with a code and description and then work your way down to fill out the necessary fields.
Accrual Calculation Rule: Choose "Frequency."
Accrual Frequency: Enter the frequency of the rule here. Your accrual can occur per Pay Period, Daily, Calendar Year, Anniversary, Fixed Day Month, Quarterly, Monthly, or End of Month. Most clients choose Calendar Year, Anniversary, or Monthly.
Fixed Accrual Day Month: If you select "Calendar Year," the accrual will occur on January 1st each year. If you select "Fixed Day Month," you get to enter the exact date you want the accrual to occur, i.e. January 31st. To enter that date, enter Day: 31 Month: 1.
New Hire Pending Days: If your new employees must work a set number of days before getting the time off they've accrued, enter the number of days here. Once they've passed the pending days, they'll be able to use that time off, which will go straight into their account.
Pending Rule: In order to use the pending days' function, you have to select how the system determines what is pending.
- No Pending
- Pending For Number Of Days - Employees must work a certain number of days in order to use the time off they've accumulated.
- Calendar Year - Employees get access to their accrued time on the 1st of the following calendar year.
- Anniversary - Employees get access to their accrued time on their work anniversary (working one full year).
- Fixed Day Month - Employees get access to their accrued time on a fixed date.
Fixed Pending Day & Month: This is only for new hires whose time off is pending until a certain date. "Fixed Accrual Day Month" is the date the employee's hours are placed in their pending bank. This date is the date on which they'll be able to access the bank of hours and use them.
Rollover Rule: In our system 'rollover' means emptying the bucket of time accrued. Typically employers set the accrual base to "Calendar Year," so that their accrued time expires at the end of the year. The option "Rollover Carry Forward" signifies carrying the time over, instead of rolling over.
Fixed Rollover Day Month: If you'd like to specify a specific date that you want the rollover or carry forward to occur, mark it here. For instance, if you chose May 5th you'd enter Day: 5 Month: 5.
- Rollover Earning: If you wish to pay your employees for their unused hours, you can select a rollover earning that tells the system what rate to pay them, whether it be regular hours, vacation or sick, etc. Whenever their balance expires, the system will take their remaining balance of unused hours and add it to the time card under the earning you selected.
- New Hire Filter: The New Hire Filter automatically applies the accrual policy to new hires the second the supervisor creates the employee. This entails building a new hire filter. Go into Security Menu>User filters>create a new filter for all employees with the status as "Active."
Once you're finished, it's time to add the rate of accrual along with other rules. To do this, click on the "Add" button.
PTO Rates: This window establishes the rules of your policy, including which employees the policy applies to, the accrual rate, and the hours they're allowed to carry over.
The first two fields determine the length of service of the employees this policy applies to.
By "LOS TYPE," choose from Days, Weeks, Months, or Years.
By "Los Number," enter the number that is the limit for when the system should no longer apply this policy to employees. As you can see, in our policy we entered 99,999 months. Based on this, anybody under the length of service of almost 10,000 months will receive this accrual rate.
Accrual Rate: Enter the flat amount of the number of hours they accrue. Since we want 20 hours, we entered 20.
Max Carry Over In a frequency-based policy, the only field that you would consider filling out. This field allows you to cap the number of hours that get carried over. If your employees accrue 20 hours, you can enter that they should only be able to carry forward 10 by typing 10, or whatever value you wish. (In a frequency-based policy that only accrues once a year, this is the last optional field that applies.)
Filter: If you have multiple departments, like Kitchen, Front Desk, etc. and want them all to accrue at different rates, you can apply a filter that only applies this accrual rate to that set department. To finish, click "Apply" and once you're back in the main window, you can click "Add" again and create an identical rule, but enter a different "Accrual Rate" and apply another department and so on and so forth.
Once you're finished, click "Apply."
Click "Save" and then you're done!
To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with Fingercheck today.