Traditionally, time off has been calculated on an accrual system but some organizations function on an entitlement system instead and so require an extra time off type to enact this.
The entitlement based time off is a time off type setup that accrues time off at a certain point in time (either on a specific date or based on the employees start date), and when the date has reached, depending on the setting, the employee will be allocated a time off amount (entitlement) that they will be able to use throughout the year. Time off requests that are submitted from the employee will then be compared to the entitlement. This feature is non-reliant on a pay run.
Important
The new time off calculation method calculates the time off entitlements in either the 365/366 or the 260/261 method (found in business details).
Time off entitlements will now be provided outside of a pay run at set dates.
We have introduced a field called "Full time equivalent hours" which enables the admin to enter the hours in accordance to an employee on what makes up a full time employee (found in pay run defaults) - this is whats used to also calculate an employees time off entitlement.
| Payroll Plan: | Standard | Premium |
You have the choice to set up the new time off entitlement option with new or existing employees. To set it up with a new employee, first add a new employee. Follow the instructions here.
- Click Add a New Employee
- This takes you through the Add new employee wizard.
- Go through the wizard, adding Personal information.
- In the Employment details module select the correct time off allowance template corresponding to the new time off entitlement settings.
- Click Next
- Complete the set up with Banking details, NI details.
- Click Next.
- And pension details.
- Click Next
- Set up is Complete.
You can now set up Time off entitlement as a Time off type. This means all employees you wish to be on this entitlement system can be set to this type.
To read about how to set up a new type, please see this article.
- Go to Payroll Settings.
- Under Pay Run settings select Time Off Types.
- Click the Add button.
- Name the new type.
- Fill out the following fields:
- External ID
- Time off Type Type (Make sure this is set to Entitlement-based time off).
- Employee Time off balance
- Select from these options: Prevent negative time off balances
- Automatically accrues
- Exclude from termination payout
- Apply negative balances on termination
- Hide accruals from pay stubs
- Hide balances from pay stubs and in employee portal
- Hide time off type name from employee view
- Unit types (Weeks/Days/Hours)
Important
As you have chosen Entitlement based time off, a new option will appear here referring specifically to this.
Tiered Time Off:
This allows you to move employees to a new time off allowance in line with seniority, perhaps, without having to change their time off type or create a new one in line with HR.
Select: Do not apply time off balance to employees on assignment
Entitlement Based Time Off and Tiered Time Off
- Tier 1 Accruals for this time off type start x Months after employee's start date
- Amount Accrued x hours Monthly on The following date xx/xx/xxxx
- Advanced
- Carry over
- Carry over date
Pro Rata for Part Time/Casual Employees
Set whether employees receive a prorated entitlement amount based on their standard work week. If the Full Time Equivalent hours is set as 40 hours and the employee works 20 hours, they will receive 50% of the entitlement amount.
-
- Pro rata accrual based on employee's hours (select if applicable)
Important
Ticking this box means time off is calculated on normal working hours per week compared to the business working hours per week to pro-rata their entitlement.
Time Off Balances for New Employees (Select one of the following)
Set new employees to receive a nil or full balance. Employees with existing balances would need to be manually updated in their employee file.
-
- Do not apply time off balances to employees on assignment
- Apply full balance amount on employee assignment
- Apply pro rata amount on employee assignment
Payment setup (select one)
-
- Basic
- Don't pay for the time off taken
- Report time off earnings against a specific income type
- Custom
Click Save
This time off type can now be applied to any employee.
Time off entitlements will now be provided outside of a pay run at set dates
- Select Pay runs from side menu.
- Click New pay run or select the existing pay run you wish to view.
- Select the employee you wish to view the time off entitlement for.
- Select the Time Off Balance button.
- This will show you a module panel with the time off balances for that employee, including, their time off entitlement.
- You can change a single employee to time off entitlement as their time off type by then selecting Actions, Adjust time off, and select the appropriate time off type from the drop down menu that appears in the pay run information.