Overview
Time Off accruals award hours on a schedule based on the accrual frequency selected in the policy. When an employee is eligible for only part of an accrual period, the system prorates the award.
This article is intended for HR administrators, Time Off administrators, and managers who configure Time Off policies and need to understand why an employee received a specific accrual amount.
Where to configure these settings
You configure accrual frequency and proration settings in a Time Off policy's accrual rule setup for the applicable Time Off Types.
How to interpret accrual results
When reviewing an employee’s accrual balance or history, always evaluate the following configuration elements together. Accrual outcomes are determined by a combination of these settings.
Accrual frequency determines how often hours are awarded.
Hours are awarded determines when the award becomes available during the accrual period.
Proration settings determine how partial eligibility within a period is calculated.
Policy renewal cycle determines when yearly calculations such as caps and carryover reset.
Tenure rules may change the accrual amount depending on employee service length.
Worked Hours rules calculate accruals based on actual worked time rather than calendar periods.
Because these rules interact with each other, the accrual amount shown in the employee record always reflects the combined result of these configurations.
Quick checklist for validating accrual calculations
If an employee’s accrual does not match expectations, review the following configuration points before making policy adjustments.
Confirm the employee is assigned to the correct Time Off policy.
Confirm the accrual frequency configured in the policy.
Review the Hours are awarded setting to determine when hours become available.
Check whether new hire proration or termination proration is enabled.
Verify the employee’s hire date and policy assignment date.
Review the policy renewal cycle to understand when annual calculations reset.
If using Worked Hours rules, confirm the pay period is closed.
Verify whether a tenure level change occurred during the accrual period.
These configuration checks resolve the majority of accrual-related questions.
Accrual frequency options
Accrual Frequency | What it means | Example |
|---|---|---|
Yearly | Awards hours on a yearly schedule. | 120 hours per year |
Monthly | Awards hours each month. | 10 hours per month |
Weekly | Awards hours each week. | 4 hours per week |
Pay Period | Awards hours by pay period. | 8 hours per pay period |
Worked Hours | Awards hours based on hours worked rather than calendar time. | Every 80 hours worked, accrue 8 hours |
Hours are awarded controls when hours become available.
First day of the period: Hours become available at the start of each period.
Last day of the period: Hours become available at the end of each period.
Policy renewal cycle defines the annual cycle used for accrual-related settings such as carryover and caps.
Hire date anniversaries: The cycle is based on each employee's hire date anniversary.
On specific date (MM/DD): The cycle is based on a specific calendar date.
When proration occurs
Proration applies when an employee is eligible for only part of an accrual period.
Scenario | What happens |
|---|---|
New hire joins mid-period | The award is prorated based on the portion of the period after the hire date. |
Employee is terminated mid-period | The award may be prorated or reduced based on the policy settings. |
Policy assignment starts mid-period | The award is prorated based on the portion of the period after the assignment date. |
Policy ends mid-period | The award is prorated based on the portion of the period before the end date. |
Tenure level changes during a period | The accrual may be split across the period, depending on the tenure effective date option. |
When an employee is eligible for only part of an accrual period, the system prorates the award based on the portion of the period for which the employee is eligible.
For monthly accruals, proration uses the actual calendar month length.
Worked Hours behavior
Worked Hours accruals are based on hours worked rather than calendar-based periods.
Common Worked Hours rule patterns include the following:
Every X hours worked with to accrue X hours.
to accrue x percent to award a percentage of worked hours.
Worked Hours awards are evaluated when the pay period is closed.
Proration behavior when the pay period closes
The When the pay period is closed setting controls how partial worked hours are evaluated when the threshold is not exactly met.
Option | Behavior |
|---|---|
Exact accrual is awarded | Awards whole units only. If the required threshold is not reached, no accrual is awarded during that pay period. |
Prorate Before | Allows partial accrual when the worked hours fall below the configured threshold. |
Prorate After | Allows partial accrual when the worked hours exceed the threshold but do not reach the next full unit. |
Full Proration | Allows partial accrual both below and above the configured threshold. |
Carry forward behavior for remaining worked hours
If the required worked hours threshold is not reached during a pay period, the remaining worked hours can carry forward and accumulate until enough hours are reached to generate another accrual award.
Option | Behavior |
|---|---|
Carry forward remaining worked hours | Remaining worked hours accumulate across pay periods until the required threshold is reached and a new accrual award is generated. |
Tenure level behavior
Tenure rules allow you to award different accrual amounts based on how long an employee has worked for your organization.
Tenure Level Effective Date controls when a new tenure level begins.
Option | What it means |
|---|---|
Upon First Accrual After Hire Date Anniversary | The new tenure level begins with the first accrual after the employee's hire date anniversary. |
On Hire Date Anniversary | The new tenure level begins on the employee's hire date anniversary. |
On Start of Policy Cycle at Hire Date Anniversary | The new tenure level begins at the start of the policy cycle when the employee reaches their hire date anniversary. |
On Following Policy Cycle After Hire Date Anniversary | The new tenure level begins in the following policy cycle after the employee reaches their hire date anniversary. |
Depending on the option selected, a tenure change may affect accrual timing and proration within a period.
Examples
Monthly accrual with a mid-month hire
Rule
Accrual Frequency: Monthly
Hours are awarded: Last day of the period
New hires will have their Vacation hours prorated on their hire date: enabled
Award: 10 hours per month
Employee
Hire date: Jan 15
Monthly period: Jan 1 to Feb 1
Result
The employee is eligible for part of the monthly period.
The monthly award is prorated.
Using this example, the prorated award is 5.48 hours.
Weekly accrual awarded at period start
Rule
Accrual Frequency: Weekly
Hours are awarded: First day of the period
Award: 4 hours per week
Result
If the employee is eligible for the full period, 4 hours are awarded at the start of each weekly period. If the employee joins mid-cycle, the award is prorated.
Worked Hours accrual
Rule
Every X hours worked: 80
to accrue X hours: 8
Result
If the employee works 80 hours, the employee accrues 8 hours.
If proration is allowed and the employee works fewer than 80 hours, the award may be prorated based on the pay period close setting.
FAQs
Why did a new hire receive less than the full award?
The employee joined mid-period, so the system prorated the award based on the portion of the accrual period for which the employee was eligible.
Why does the monthly proration not match a 30-day calculation?
Monthly proration uses the actual calendar month length, which may be 28, 29, 30, or 31 days.
Why did a terminated employee lose hours that were previously awarded?
If the employee was terminated during the accrual period, the award may have been reduced or prorated based on the policy settings.
Why did a Worked Hours rule not award any hours?
Review the Every X hours worked threshold, the to accrue X hours or to accrue x percent value, and the When the pay period is closed setting.
Check the timesheets to ensure the pay period is closed. Once the pay period is closed, the system will assign hours to the employees. If a pay period is reopened, the previously assigned hours will be removed until the pay period is closed again.
Why were hours awarded on the wrong day?
Check whether the policy uses First day of the period or Last day of the period under Hours are awarded.