Set up Accrued Vacation or Sick Hours

Accrued and used hours must be posted to accounts which are set up with a Statistic classification.

To set up accounts for accrued hours:

1. Select Setup>Accounts.
2. Set up separate accounts for Accrued Vacation Hours, Accrued Sick Hours, and/or Accrued PTO Hours as necessary. Select Statistic in the Classification field.
   
   
   
3. Set up an account for Accrual Offset. Select Statistic in the Classification field. This account will be used by the system as an offset account for the payroll item.
   
   
   

Set up Accrued Hours

There are two ways to accrue Vacation or Sick Hours. You may accrue a flat number of vacation or sick hours at the beginning of the year for each employee or you may accrue hours each pay period based on the number of hours worked by an employee.

To set up payroll items to accrue a flat number of hours at the beginning of the year:

1. Select Setup>Payroll Items.
2. Set up an Accruable Benefit item for Accrued Vacation Hours.
3. Leave 0.00 in the Amount or % field
4. Select Qty in the Based On field.
5. Select the Accrued Vacation Hours general ledger account in the Expense Account field.
6. Select the Accrual Offset account in the Liability Account field.
7. Select Vacation in the Tracking field.
8. Repeat for Sick and/or PTO hours.
   

Note: If you enter identical descriptions in the accrued and used vacation hours items, the program will print the Description on the check stub and show the 'remaining balance' instead of printing both items.

To set up payroll items to accrue hours each pay period based on the number of hours worked by an employee.

1. Select Setup>Payroll Items.
2. Set up an Accruable Benefit item for Accrued Vacation Hours.
3. Leave 0.00 in the Amount or % field
4. Select Regular Hours Worked or Total Hours Worked in the Based On field.
5. Select the Accrued Vacation Hours general ledger account in the Expense Account field.
6. Select the Accrual Offset account in the Liability Account field.
7. Select Vacation in the Tracking field.
8. Repeat for Sick and/or PTO hours.
   

Note: Total Hours Worked includes all hours entered for payroll items with a Pay selected in the Type field and Regular selected in the Pay Class field. Regular Hours Worked includes all hours entered for payroll items with a Pay selected in the Type field, Regular selected in the Pay Class field and 1.00 in the Pay Factor field.

Set up Vacation or Sick Hours Used

To set up vacation or sick hours used:

1. Select Setup>Payroll Items.
2. Set up an Accruable Benefit item for Vacation Hours Used.
3. Enter the same Description as you did in the Accrued Vacation Hrs Item to print the remaining balance on the check stubs.
4. Enter -1.000 in the Amount or % field.
5. Select Item(s) Qty from the drop down list in the Based On field.
6. Click Items.
7. Select VP or the vacation Pay item from the drop down list in the Item field.
   
8. Leave the department field blank.
9. Click OK.
10. Leave 0.00 in the Limit field.
11. Leave the Limit Type blank.
12. Select the Accrual Offset account in the Expense Account field.
13. Select the Accrued Vacation Hours account in the Liability Account field.
14. Select Vacation in the Tracking field.
15. Repeat for Sick Hours.
    

Note:  Insert a row in the bottom grid of the necessary Pay Templates to have the system calculate hours used for sick or vacation pay.