LA Payroll - Earned Time: How to set up earned time

How to set up earned time and how it is applied to the paychecks

How to set up earned time

How to set up Accrual for Earned Time Calculations

How to apply these settings to Employee Records

How earned time is reflected on Employee Pay Stubs


How to set up earned time

When you select the Earned Time button on the PreferencesPayroll screen, a window opens in which you define how your organization handles employee vacation, sick, and personal time.

Employee Anniversary at:  Select the point from when earned time is to be calculated:

None: vacation, sick, personal have no boundaries in being carried over to next year

Hire DateFiscal YearEnd of (Calendar) Year: copies earned time from date selected

On Anniversary Copy Earned TimeSelect the option button to either copy the balance of earned time into the new (hire, fiscal, or calendar) year, clear out any unused time, or copy the time, limiting it to the maximum hours you enter here.

Use Accrual for Earned Time Calculations

If left unmarked: If you do not mark this check box, select OK to save the above settings. In this case, you will have to manually update the Earned time each pay period.

If box is marked: If you do mark this check box, select Next to define your accrual settings. Only when this box is marked will earned time be automatically accrued in any of the three categories, Vaction, Sick, Personal,  when payroll is processed. This is the case no matter how the Employees' Accrual screen is set up.

Next: Only select the Next button if you mark the box to Use Accrual for Earned Time Calculations. The next screen will allow you to set up the general default settings for all employees. Then, if an employee has a different hours earned format, you may go into that employee's Earned Time Tab in Manage Employees and make changes specific for that employee under the Accrual screen.


Accrual Definitions for Earned Time

When you select Next on the Earned Time window, you see the screen in which to define the accrual settings.

Accrual for: Select the tab (Vacation, Sick, or Personal) and mark the check box for the earned time category you are defining. These are default values and can be customized for each employee. Changes here will not be automatically applied to existing employee records.

  • Accrual is fixed amount per pay period: Mark this check box if you want to increment employees’ earned time by a fixed number of hours each pay period that you enter below. If the check box is unmarked, the Hours accrued and Per # of hours worked fields are active.

Hours earned per pay period: Enter the hours each employee accrues every pay period.

Minimum hours to earn accrualMark this check box if you wish to define a minimum number of hours in a pay period in order for the employee’s earned time to accrue. Then type the number of hours. If this is set, please note that employees on vacation, who will not meet the minimum hours you define, will not accrue.

Hours accrued: This field and the ones below become active when the Accrual is fixed… check box is not marked. Type the number of vacation, sick, or personal time hours that employees will accrue whenever they have worked a stated number of hours.

Per # of hours worked: Type the hours employees must work to earn the hours above.

Maximum # of hours to accrue per pay period: You may set a limit on the number of hours any person can earn in one pay period regardless of the number of hours worked.

The position at which the next two fields are active depends on the Accrual is fixed setting.

At Anniversary Add: This field lets you define the number of hours that employees automatically earn at the Anniversary date in addition to any regular accrual.

Cap at: You may enter a maximum amount to add at the Anniversary date (Current Accrual plus Anniversary Add amount). This limits the number of hours that can be rolled over into the new year.

Maximum # of hours can accrue: You may set a limit on the total hours a person can earn. This maximum includes any rollover hours from the prior year. An employee who reaches this maximum will no longer accrue additional time for the remainder of the year.

  • Accrue for Part Time Employees: Mark this check box if you want part-time staff to also accrue earned time. A check box on the Personal tab of an employee’s record defines whether the person is considered part-time.

OK: Select this button to save these settings.


How to apply settings to Employee Records

To apply these settings to individual employees, go to the Earned Time tab in the employee records and select the Accrual tab.

For a new employee, these settings are applied automatically when the new record is created.

For a new part-time employee, if the Accrue for Part Time Employees check box is not marked here, these accrual settings will initially display. Click the Reset to Defaultbutton to clear the settings.

For an existing employee, click the Reset to Default button to apply these settings.


How hours are reflected on the pay stub

When you process payroll, the Remaining Balance for the  Earned Time in each category will be on the check stub. Note, however, this will be the balance prior to the payroll process calculations. See the grid below.

Employee Name Remaining Vacation Hours before payroll is processed Vacation Hours accrued per payroll Vacation Hours on stub when payroll is processed Vacation Hours in Earned Time tab after payroll is processed
Sample Employee 40 1 40 41



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