A time off policy based on hours worked requires employees to earn paid time off (PTO) based on the number of hours worked. Only employees can be assigned to time off policies.
After a time off policy have been created, employees can submit time off requests, and you will be able to approve or deny them.
Prerequisites: This feature requires Vagaro Payroll and is available only to businesses in the US.
To add a policy for time off based on hours worked:
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Go to Time Off Policy.
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On a Phone: Go to → → → .
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On the Web, Tablet, or Pay Desk: Go to → → .
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Select + Add Time Off Policy.
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Under the Policy Details heading, provide the following information:
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Name of Policy: The name of the time off policy or a brief description of it.
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Type of Time Off Policy: Whether the time off policy is for employees to request Sick Leave to address their health or Paid Time Off (for example, a day off or vacation).
Note
If an employee is terminated, any unused sick time will not be paid out to employees in their final paycheck.
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Is there a limit to how much time employees can take off: Select Yes, There is a Limit.
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Under the Accrual details heading, provide the following information:
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How do your employees earn time off?: Select Hourly.
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Do employees earn time off based on hours that they have worked or on all hours they have been paid?: Select whether they will earn time off based on Hours Worked Only or All Hours Paid.
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Should overtime hours be counted towards time off accrual?: Select whether to include or exclude overtime hours.
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Under the Rate heading, enter how much Time Off Earned in hours will be accrued per working Hours Paid. For example, employees may earn eight hours of time off per 160 worked (or approximately one day of time off per month).
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Enter the Max Hours Earned Per Year, after which employees will stop accruing hours until the next calendar year.
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At Are employees limited to the number of hours they can carry over year to year?, select whether employees are allowed to carry over some or none of their unused time off hours. If you select Yes, there’s a limit, also enter the Max Carryover hours.
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Select Continue.
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Add employees to this time off policy.
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Select + Add Employees.
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In the Add Employees To Payroll popup, select the employees to add to payroll.
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Select Continue.
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Enter the time off Balance in hours that employees should currently have.
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Select Finish.
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