Setting Up Time Off Accrual Policies

Applies to: Workforce · Premium · LawBillity

Accrual settings decide how people earn hours for a time off code. You can grant a lump sum every year, add hours each pay period, accrue a set amount per hour worked, or skip automatic accruals and add hours by hand. Settings apply firm-wide per code: everyone assigned to the code follows the same rule.

Getting There

There are three ways in. All open the same firm-wide accrual settings:

When creating a code, tick Track Accruals and click Save & Configure.
On an existing code, click its name, then Make Edits next to Track Accruals.
On Entries > Time Off > Balances, click the link in the Accrual Type column.

The Accrual Setting dropdown offers four methods.

Choosing an Accrual Method

Accrual Setting

How hours are earned

Typical use

Manual

Nothing accrues automatically. An admin adds hours on the Balances tab.

Holiday allowances granted by hand; one-off grants.

Yearly

A fixed number of hours per year, granted on the accrual date.

Vacation, personal days.

Each Pay Period

Hours land a set number of days after each pay period ends. Enter the amount per year (the system divides it across periods) or per period.

Steady accrual that matches payroll.

Based on Hours Worked

Accrue X hours for every Y hours worked. Salaried users accrue on a 40-hour work week.

Sick-leave laws such as 1 hour per 30 worked.

Setting the Options

Every method except Manual has the same options:

Option

What it does

Accrue N hours per year / per period / per N hours worked

The rate. For Each Pay Period, choosing "per year" makes the system work out how much to add each period.

Accruals will take place N day(s) after the end of each pay period

(Pay Period and Hours Worked only.) A delay before accrued hours land, so payroll can close first.

Use it or Lose it

The user must use all accrued hours by the end of the accrual period or lose them. The balance resets to 0 on the accrual date. The product warns this isn't recommended for California users.

Accruals will happen on

Each user's Hire Date, or one fixed date for the whole firm. If you choose Hire Date and a user has no hire date in their profile, the system uses January 1.

Allow entries outside the user's current accrual year

Lets a user request time off in the next accrual year before their balance resets. Example: balances reset June 1, and the user can still request July 1 off in May.

Maximum Balance Limit

The user stops accruing once the balance reaches this number. Enter 0 for no limit.

Allow a negative balance

Lets a request save even if it takes the balance below zero. When off, the request form blocks the save and shows how far over balance it is.

Give hours to users based on length of employment

Tenure levels: at year 2 the user receives N total hours a year, at year 3 M hours, and so on. Click Add Level for each step. Each level must be higher than the one before.

Yearly accrual: 24 hours per year, use-it-or-lose-it, a 40-hour cap, and 32 hours from year two.

Each Pay Period adds the delay after the period ends and a per-year or per-period choice.

Based on Hours Worked: accrue N hours per N hours worked.

Important: Tenure levels rely on each user's hire date. Set it on the user's Overview page under Admin > Manage Users before turning this on, or everyone is treated as year one.

Worked Examples

80 hours of vacation a year, reset each January, roll over up to 120: Yearly, accrue 80, Use it or Lose it off, fixed date January 1, Maximum Balance Limit 120.
Sick leave at 1 hour per 30 worked, capped at 48: Based on Hours Worked, accrue 1 hour per 30 hours worked, Maximum Balance Limit 48.
Public holidays granted by hand: Manual, then add the hours on the Balances tab each year.

Next Steps

To check what a user has earned, or top up a balance by hand, see Managing Time Off Balances. If a code shouldn't accrue at all, leave Track Accruals unticked when you create it. See Setting Up Time Off Codes.