Each benefit accrual hours plan is different. The following scenario is designed to explain how hours accrual policies can be defined in the system.
Where it's used: This is a vacation plan policy for weekly paid full-time employees. Eligible vacation hours are accrued per pay period after the first employment anniversary. After completing one year of employment, an employee is eligible for 40 hours of vacation time annually. After two years of employment, the employee is eligible for 80 hours annually, and after three years, the employee accrues 120 hours annually. After five years of employment, that same employee accrues 200 hours annually.
Employees of all levels can carryover 40 hours, with a total maximum allowed of 240 hours.
This chart shows how the entries on the Hours Accrual Code’s accrual chart would be completed for this policy.
|
Years |
Less than or Equal Months |
Vacation Hours Annual Rate |
C/O Max |
Total Max |
|---|---|---|---|---|
|
1 |
12 |
0 |
0 |
0 |
|
2 |
24 |
40 |
40 |
40 |
|
3 |
36 |
80 |
40 |
120 |
|
5 |
60 |
120 |
40 |
160 |
|
Over 5 |
9999 |
200 |
40 |
240 |
Add a code record. As with all codes, the Code name must be ten characters or less and should not contain any spaces or special characters. One exception is that an underscore may be entered between characters.
Enter a Description of the code. The description should be thirty characters or less.
Since this policy accrues annually, select the Pay Period accrual calculation option. Also select the Accrue Annual Anniversary checkbox. For reset hours, select the Never Reset option.
The accrual levels would be completed according to the previous chart.
Verify that the code is active, and save the code.
You would then assign this code to the Benefit Code for the appropriate vacation benefit plan.
In this scenario, an employee, who is with the company for four years and has not used his accrual below the carryover maximum of 40 hours in any one year, will have reached his total maximum of 120 hours.