You can create rules at the company, group, or employee level to control how time off is tracked, paid out, or adjusted when employees work during an approved time-off period. These rules determine how the system records time-off hours, converts worked hours during time-off periods, and handles time-off cash-outs for payroll and reporting purposes.
Go to Global Settings > Time Tracking > Time Off Code Configuration.
In the Time Off Configuration list, select the time-off type you want to configure.
Select Create Rule.
Enter the rule details:
Enter a name for the rule.
Select the Starting on date.
Select the audience level for the rule:
Everyone applies the rule company-wide.
Specific group applies the rule only to selected groups.
Specific employee applies the rule only to selected employees.
If applicable, select the group or employee assignment.
Rule Name examples
Use clear and descriptive rule names so administrators can easily identify the purpose, audience, and behavior of each time-off configuration rule. Recommended naming structure:
[Audience or Department] + [Time-Off Type or Behavior]
Company Default PTO
Hourly Employees Vacation Rule
Operations Team Sick Time
Field Staff Holiday Rule
Comp Time Cash Out Rule
Weekend Time-Off Conversion
Use consistent naming conventions across time tracking rules to make configurations easier to manage and troubleshoot.
Under Time codes, select the Time-off Code used when employees take this type of time off.
If employees can receive a cash payout instead of taking time off, select the appropriate Cash out Code.
If your organization does not use cash-outs for this time-off type, leave this setting unconfigured.
If employees may work during an approved time-off period, under Hours worked during time off, turn on Transform worked hours while time off is in effect.
Select Add Transformation.
For each transformation:
Under Consider hours of, select the source time code.
Under As, select the time code the worked hours should be converted to.
Repeat as needed to configure up to five transformations.
Select Save.
Note: If no transformation rows remain, Transform worked hours while time off is in effect automatically turns off.
Note: Turning off Transform worked hours while time off is in effect without saving does not delete previously saved transformations. Turning it back on restores the saved transformations until you save your changes.
Understand transformation validation rules
When configuring time-off code transformations, the system validates your selections to prevent duplicate or conflicting configurations.
Duplicate source time codes
Each Consider hours of time code can only be used once within the same rule.
Ambiguous transformation chains
A time code selected under As cannot also be selected under Consider hours of in another transformation row within the same rule.
Why this happens
The system requires different behaviors for:
The time-off code used when employees take time off.
The worked-hours code that should be converted while the time-off rule is active.
The destination time code used after the transformation is applied.
This validation helps prevent duplicate, circular, or invalid payroll calculations.
Example configuration
Setting | Example value |
Time-off Code | PTO |
Cash out Code | PTO Payout |
Consider hours of | Worked Hours |
As | Overtime |
Common time-off scenarios
Scenario | Recommended setup |
Employee takes time off | Record the absence using the appropriate Time-off Code |
Employee receives a payout instead of taking time off | Use a dedicated Cash out Code |
Employee works during an approved time-off period | Convert worked hours to the appropriate earning or payroll code |
View rule assignments
You can review which employees or groups are assigned to a time-off configuration rule.
Select the rule from the configuration list.
Select View Assignments.
Select an employee to view the assigned rule details, effective dates, and assignment level.
Edit a time-off configuration rule
Select the existing rule from the configuration list.
Select the Edit icon.
Update the rule settings as needed.
Select Save to apply the changes.