This article reviews creating a PTO Policy for Workforce. Here, Users can configure which Employees accrue PTO and at what rate.
To create a new PTO Policy, navigate to the Policies page, then click on 'Create PTO Policy'. This will open the 'Create PTO Policy' form
Create PTO Policy Form Overview
1) Effective Date - Date that the PTO Policy will be activated and used moving forward. Any existing PTO Policy will be deactivated on this date.
- Important Note: If the effective date is the current date, any existing PTO Policy will be replaced upon clicking 'Create PTO Policy' (#4)
2) Eligibility - Which Employees the PTO Policy applies to:
- All employees - PTO Policy will apply to all Employees, including part-time Employees
- Full time employees - PTO Policy will only apply to full-time and salaried Employees
- Only salaried employees - PTO Policy will only apply to salaried Employees
3) Policy Type - How PTO Hours are calculated for eligible Employees
- Unlimited PTO- This option allows Employees to take as much PTO as they want. PTO requests will still need to be submitted and approved.
- Flexible PTO - This option limits the number of PTO hours each Employee accrues. PTO accrual is calculated per hours worked, and a cap on maximum hours accrued can be set.
4) Create PTO Policy - Click to create the PTO Policy
- Important Note: Once a PTO Policy is created, it cannot be removed, it can only be replaced.
Selecting 'Flexible PTO' will expand the form, allowing the User to configure accrual rates and caps.
1) Accrual Start Date - The number of days after an Employee's hire date that PTO accrual begins
2) Accrual Rate - The number of PTO hours accrued per number of hours worked. This is the base rate for all eligible Employees. Additional tiers can be added based on an Employee's tenure (#4)
3) Maximum Balance - The maximum number of PTO hours an Employee can accrue. Additional hours will not be accrued until the Employee uses their PTO hours and drops below the maximum balance. Additional tiers can be added based on an Employee's tenure (#4)
4) Tenure Bonus - Click 'Add Tenure Bonus' to add additional tiers of accrual rate and maximum balance based on an Employee's tenure.
a) Years Worked - Number of years an Employee has been employed before the tenure tier is applied
b) Increase accrual rate by - Number of additional PTO hours accrued. This number is added to the base rate of the PTO Policy.
c) Increase maximum balance by - Number of additional PTO hours accruable before the PTO cap is reached. This number is added to the base Maximum Balance for the PTO Policy
d) Delete - Click the trashcan icon to remove the tenure bonus tier
5) Accrue on PTO - Indicates if PTO hours used are included when calculating the number of hours worked per week by an Employee.
No, accrue only on hours worked - PTO will be accrued per hour worked only
Yes, accrue on all hours paid, even PTO hours - PTO will be accrued per total hours for an Employee