How to Setup and Manage Accruals

Accrual Management from TempWorks Training on Vimeo.

In TempWorks Enterprise you are able to setup and track customized accrual packages. This allows you to track accruals as well as deduct any vacation or PTO which has been paid out. Each employee will have an ongoing accrual amount which can be modified as needed allowing for excellent flexibility, reliability and usability.

This document will walk users through how to properly setup varying types of accrual packages, how to attach an accrual package to an employee, and how to review and modify accrual balances.

How to Setup Accrual Packages:

Your TempWorks Enterprise Administrator (those that have access to the "administration" section of Enterprise) will first set up the accrual packages, these packages will then be available to your employee base.

To begin with setup, simply navigate to administration and select accruals, then, click the + button in the upper right to add an accrual. You will be asked to define the accrual info, what pay code(s) accrue, what pay code(s) deplete accrued time, and any accrual tiers that exist.


1. Accrual Info:

  1. Name: A title for the accrual. This name will appear in a corresponding drop-down on the accruals page of the employee record.
  2. Description: A space allotted for any additional details regarding the accrual.
  3. Type: The base by which the accrual is earned.
  1. Anniversary: Employee accrues X number of hours after Y amount of days have been worked.
  2. Annual: Employee accrues X number of hours annually.
  3.  Hourly: Employee accrues X number of hours per hour worked.
  4.  Pay Period: Employee accrues X number of hours per pay period worked.

*Note- The accrual types of anniversary and annual exist so that users can document the accrual type, but the system only automatically calculates hourly and per period accrual types. If you select/setup any other accrual types, updates to balances would need to be done as manual adjustments on the employee record.

  1. Hier (Hierarchy): Where the accrual will exist in your databases hierarchy. For example, if you have multiple entities with unique accrual rules, those accruals may be established per entity. Or, perhaps you want to setup accruals for your temporary staff and a separate accrual structure for your internal staff--hierarchy allows you to do this. Hierarchy could be as far reaching as system or as specific as a branch.
  2. Active: Whether or not the active box is selected determines if the accrual is active in your database and if it will be available for setup on Employee records.
  3. Allow Neg Balance: When selected, the accrual can carry a negative balance.
  4. Accrue on OT: When selected, the accrual will continue to earn (specifically, for hourly based accruals) when overtime hours are reported.
  5. Accrue on DT: When selected, the accrual will continue to earn (specifically, for hourly based accruals) when double time hours are reported.

2. Pay Codes (Earn): When this pay code is used on transactions in time entry accruals will be earned (if setup on the employee record). Typically, this is the reg pay code.

3. Pay Codes (Use): When this pay code is used on transactions in time entry accrued time will be depleted. Typically, this would be Vac1, Vac2, Sick, or Hol. Note that multiple types of pay codes may be selected for both pay codes (earn) and pay codes (use).

4. Accrual Tiers: Allows users to setup multiple rules that exist for an accrual. This can be used to setup a accrual package that changes rates over time. For instance, if an employee's rate changes from 2.8 hours per period to 4.9 hours after one year with the company.

 Accrual Tiers Column Details:

Description: Used to define and distinguish accrual tiers (especially helpful when multiple tiers are being established).

Accrual Rate: The rate at which the accrual is earned, this is directly related to the pay codes (earn). For accrual's with the type of pay period the rate should reflect how much time is accrued after the completion of a pay period. For accruals with the type of hourly this should reflect how much time is accrued per hour worked.

Accrual Rate Example: If pay code (earn) is set to reg, and the accrual rate is set to 0.05, that means if an employee works 40 hours that week, they've accrued 2 hours for that week (0.05 * 40 = 2).

Depletion Rate: The rate at which the accrual is used, this is directly related to the pay codes (use). Typically this is set to "1".

Depletion Rate Example: If pay code (use) is set to Sick, and an employee uses one sick day, in time entry, that would be keyed in as 8 RT hours with the pay code sick. The 8 hours would then be deducted from the employee's accrual balance so long as the depletion rate was set to 1.

Period Max Accrue: The maximum amount of time that may be accrued in a given pay period. This is usually similar if not the same as the rate when the accrual type is pay period. When the type is hourly take into the account the maximum hours an employee is allowed to work. Something to consider is if employees can accrue on OT, you will want the period max accrue to be greater than the accrual rate * 40 .

and the annual max accrue to be greater than accrual rate * 40 * 52.

Annual Max Accrue: The maximum amount of time that may be accrued in a given year. For the accrual type of pay period this can be calculated with the simple formula of (rate* pay periods per year). For hourly this can be the upper limit of how much can be accrued per year.

Period Max Balance: The maximum amount of time that may be held by an employee at the end of a period. This usually will be the same as the annual max balance and anniversary max balance. In some cases you may allow this balance to be higher than your max balance annual and anniversary If you allow your employees to exceed a max balance but do not let those hours carry over to the end of the year or anniversary.

Annual Max Balance: The maximum amount of time that may be held by an employee at the end of a year. This usually will be the same as the period max balance and anniversary max balance.

Anniversary Max Balance: The maximum amount of time that may be held by an employee at the end of their anniversary year. This usually will be the same as the annual max balance and period max balance. 

Hourly Accrual & Tiers Examples:
Example 1 (Temp PTO ):

If employee Sam works at ABC Company for...
Tier 1: 0 - 1 years, he accrues at a rate of 0.019 hours per hour worked (40 hours annually).
Tier 2: 1 - 3 years, he accrues at a rate of 0.0385 hours per hour worked (80 hours annually).
Tier 3: 3-5+ years, he accrues at a rate of 0.0577 hours per hour worked (120 hours annually).


Accrual Tier Details

Tier 1

Tier 2

Tier 3

Description

0-1 Years

1-3 Years

3-5+ Years

Accrual Rate

0.019/Hr

0.0385/Hr

0.05770/Hr

Depletion Rate

1

1

1

Period Max Accrue

0.019

0.0385

0.5770

Annual Max Accrue

40

80

120

Period Max Balance

40

80

120

Annual Max Balance

40

80

120

Anniversary Max Balance

40

80

120


How to Attach an Accrual Package to an Employee:

Start by navigating the employee that you would like to attach the accrual record to and once there, select pay setup → accruals.

Next, select the '+' icon to add the accrual. This will open the accruals window:

  1. Accrual Type: The items that display in this drop-down are the accruals that have been setup in the administration section of Enterprise. If this drop-down is blank it simply means that no accruals have been setup within your hierarchy view. See an administrator and the prior section of this help document for further instructions.
  2. Active: When selected, the accrual is active for this employee and hours will be earned and depleted based on the rules established for the accrual type.
  3. Requires Assignment/Customer Accrual : If this accrual needs additional setup on either the assignment record or the customer record to be in effect select these check box's
  4. Annual Depletion Rollover: This date determines the date that the accrued time will be considered rolled over to the next "year".
  5. Adding Packages Select the '+' icon to attach a package.

  1. Tier: Select the appropriate tier from the drop-down. The rate of accrual and depletion, as well as max balances are listed for your review.
  2. Effective Date: The date the accrual package should become activate. Allows users to future date the start of accruals. Once active the accrual will begin being calculated when processed through payroll.


Once you are done entering in criteria for a tier and effective date, simply select save.

The accruals page will be updated to display the added accrual package:

If the package accrues on OT, DT, and/or allows a negative balance the related boxes will be selected. Additionally, the service rep who added the accrual will be listed under the rep name column. Users may always edit () and add () additional packages.


Reviewing/Modifying Accrual Balances:

To review and/or modify any accrual balances, start by navigating to the (1.) pay history → accrual history page for the employee of interest.

Any (2.) accrual packages that have been added will be listed in accruals table on the page. The (3.) accrual history table will display accrual information as well as the amount that has been accrued, depleted, or manually adjusted by date and service rep.


To manually adjust an accrual balance, select the (4.) '+' icon in the accrual history table:


  1. Accrual: Items that display in this dropdown will mirror the accruals that appear in the (2.) accrual packages table.

  2. Weekend Date: The weekend date you are adjusting the accrual balance for.

  3. Amount: The amount you would like to adjust the accrual. If you are depleting an amount, enter this balance as a negative.

  4. Notes: Include any information here regarding why you are adjusting the accrual's balance.

  5. Accrual: Select this box if you need to increase the accrual's balance.

  6. Depletion: Select this box to document that you are decreasing the accrual's balance. Note that simply selecting "depletion" does not deduct the balance. The amount entered must be keyed in as a negative for an accrual balance to be depleted.


Upon selecting save, the manual entry will be visible in the (3.) accrual history table.

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