Time and Attendance Plus is capable of doing your vacation accruals for your employees who are entitled to it. Here's a short tutorial showing you how to configure the software to do your vacation accrual calculations for you, and a brief explanation of how Time and Attendance Plus carries out the calculations involved.
Add an employment type
Vacation accruals are associated with employment types. This saves you time by allowing you to set up one vacation accrual scheme to cover a group of employees. It also allows you infinite flexibility by having one employment type per employee and having a unique vacation accrual scheme per employee. Firstly let's log into Time and Attendance Plus and go to the Tools & Options->Employment Types screen.
Click the button to add a new employment type and let's add new employment type. Just call the new employment type anything you like, but in our case we'll call it the tutorial employment type
The Vacation Accrual Screen
Time and Attendance Plus allows you to setup a vacation accrual scheme for each employment type. You can access the vacation accruals from the main options area of Time and Attendance Plus.
Let's take a look at this screen. You can select which employment type you wish to apply the vacation accrual scheme to in the drop down box at the top. You now have 6 main settings to configure for you to calculate your employees vacation accruals.
- Start Accruing Hire Date Plus - this specifies the delay (if any) after the employee is hired that Time and Attendance Plus will start accruing vacation time.
- Start With - this allows the employee to start with a non-zero balance of available vacation hours. This may be useful for workplaces that give employees vacation time in advance (ie before they have earned it).
- Accrue - this is the number of hours the employee will accrue for each time unit specified in the next setting.
- For Every - this is the time unit at which the vacation time accrues. Allowable units are hours, weeks, and months. When set to hour Time and Attendance Plus will accrue for each hour worked. When set to week Time and Attendance Plus will accrue for each week of elapsed time since the employee was hired. When set to month Time and Attendance Plus will accrue for each calendar month of elapsed time since the employee was hired.
- Stop Accruing - this allows you to set an absolute limit on the amount of vacation time that the employee can accrue.
- Carry Balance Forward Yearly - when set the employees vacation time owing at the end of one fiscal year will roll over into the next fiscal year. The fiscal year is determined by the date set on the Payroll Settings page.
Setting up a Vacation Accrual Sample
We'll now go ahead and setup a sample vacation accrual scheme for the purposes of this tutorial. Firstly select the Tutorial Employment Type from the drop down list. Then setup the parameters as shown in the image below. Note that you must check the Accrues Vacation Time checkbox to setup the parameters for the vacation accrual scheme.
In our example:
- The employee starts accruing vacation 4 weeks after the hire date.
- The employee starts with a zero balance.
- The employee accrues 13.3333 hrs of vacation time for month elapsed one month after hire date. This equates to 4 full weeks of vacation time per year for a 40.0 hour week worked.
- The employee has a maximum balance of 160 hours or 4 full 40 hour weeks.
- The balance at the end of one fiscal year carries forward to the next fiscal year. So if an employee ends the year with 40.0 hours of leave owing then they will start accruing at this amount in the next year.
Assigning the Employee Type
The last step in the process is to assign the employees to the employment type and to make sure the employee is setup to actually accrue vacation time. Click the Save button on the options page to save the changes to the vacation accrual scheme. Then select an employee from your employee list and select the Manage Employees->Edit Employee menu. When on the Edit the Selected Employee screen select the Payroll Information page.
On this screen all we need to do is to set the employment type in the drop down box to the tutorial employment type. Then make sure the Accrue Vacation Time checkbox is ticked. When this is done click the Save Employee button and our employee is now ready to accrue vacation time.
All we have done here is setup an employee to accrue vacation time. We still need to be able to report on vacation time owed and taken. Obviously we still need to enter vacation time as taken by the employee. They are a subject for a subsequent tutorial!