On the Time Off Policies page there is a toggle that controls whether time off hours (Vacation or Sick) are included in the total hours used to calculate PTO (paid time off) accruals. In short: when the toggle is OFF, only hours worked earn PTO; when it is ON, sick and vacation hours are added to the total that drives accrual.
How the Toggle Works
When the toggle is OFF:
Employees only accrue PTO based on hours worked.
Sick and vacation hours do not count toward accrual.
When the toggle is ON:
Sick and vacation hours are added to the employee's total hours for PTO accrual purposes.
Hourly employees: Accrual fluctuates based on total hours worked plus any sick/vacation hours.
Salaried employees: Accrual is based on a 40-hour workweek baseline, but sick/vacation hours are added on top. This means PTO accrual for salaried staff may appear to fluctuate if sick/vacation time is taken.
Important Notes for Salaried Employees
This behavior is by design when the toggle is ON.
Although salaried employees are expected to accrue a flat amount of PTO, the system includes sick/vacation hours in the total, which may cause accrual amounts to vary.
If your company policy does not allow fluctuating accrual for salaried staff, leave the toggle OFF.
Example
A salaried employee has a baseline of 80 hours in a pay period. If they take 36 hours of vacation with the toggle ON, the accrual base becomes 116 hours – so the PTO awarded is higher than their normal flat accrual.
Best Practices
Hourly employees: Turn the toggle ON if your policy allows employees to keep earning PTO while on sick/vacation leave.
Salaried employees: Consider carefully whether this aligns with your company's PTO policy. If not, leave the toggle OFF to prevent fluctuation.
Always confirm with HR or Payroll leadership before changing this setting.