Understanding the PTO Accrual Toggle for Sick/Vacation Hours

Overview

On the Time Off Policies page, there is a toggle setting:

This setting controls whether time off hours (Vacation or Sick) are included in the total hours used to calculate PTO accruals.

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.

• While salaried employees are expected to accrue a flat amount of PTO, the system currently includes sick/vacation hours in the total, which may cause accrual amounts to vary.

• If your company policy does not allow for fluctuating accrual for salaried staff, we recommend leaving 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 total accrual base becomes 116 hours.

• PTO awarded will be higher than their normal flat accrual.

Best Practices

• Hourly employees: Use the toggle ON if your policy allows employees to continue earning PTO while on sick/vacation leave.

• Salaried employees: Carefully consider 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.