Annual Depletion Rollover on Employee Accruals

With location based accruals, an employee will have two accrued "balances" at any given time - an available balance and an eligible balance.

  • Available balance: The total number of hours that currently can be used by the employee. It is the eligible balance less any hours over the annual maximum.
    • For example, at the time of this writing the law relating to California paid sick time allows employers to limit an employee’s use of paid sick leave to 24 hours or three days during a year. 
  • Eligible balance: The number of hours that have been accrued and have met any delay requirements (i.e., eligible balance delay days, eligible date offset). 
    • ​For example, at the time of this writing the law relating to California paid sick time allows an employer to limit an employee’s total accrued paid sick leave to no more than 48 hours or six days. 

How does the annual depletion fit in?

Well, the annual depletion rollover allows an employee to carry over eligible balance hours from one year to the next (providing this does not exceed period, anniversary, or annual max accrual balances as defined in Enterprise administration accrual setup). For example, suppose you have an employee that accrues 48 hours of sick time and uses 24 hours of sick time in one year. In the state of California, this would effectively "max out" the employee's available balance for that year. However, with the annual depletion rollover, when the year changes the accrual will automatically rollover eligible balance hours into the employee's available balance, essentially "reloading" their stock of hours that can be used in the new year.

Part One: Administration Setup 

Within the accruals section of administration, there are two fields that need to be setup in order for the annual depletion rollover function to work on employee accruals.  

*Note- Only select users will have access to the administration section of Enterprise, see your manager if you have any questions. 

These said two fields are (1.) location accrue rollover type, and (2.) annual depletion limit:

1. Location Accrue Rollover Type:

The location accrue rollover type can be set to anniversary or calendar. 

What does this mean?

♦ When an accrual with a rollover type of "anniversary" is added to an employee record, the anniversary date (which can seen from the employee record → details page) will automatically pre-fill into the employee's accrual as the rollover date once they have been assigned

♦ When an accrual with a rollover type of "calendar" is added to an employee record, January 1 will automatically pre-fill into the employee's accrual as the rollover date once they have been assigned

2. Annual Depletion Limit:

Following our example accrual, we have an annual depletion limit of 24 but an (3.) annual max accrue amount of 48:

What does this mean?

Let's say you have an employee with an active accrual and a rollover type of annual. Now suppose that employee accrues 42 hours of sick time in the year 2016. With an annual depletion limit of 24, that means even though our employee technically has 42 hours of sick leave the eligible balance that can be used is 24. Compare the following scenarios below. 

♦ Scenario One:

Employee falls ill in December 2016 and uses 16 hours of eligible balance:

December 2016

Rollover Hours to New Year

January 2017
Eligible Beginning Bal. Available Bal. Before Sick Hours Used Available Bal. After Eligible Ending Bal. Eligible Bal. Sick Hours Used Available Bal.
42 24 16 8 26 26 0 24

♦ Scenario Two:

Employee uses no sick time in 2016 but falls ill and uses 16 hours of eligible balance in January 2017:

December 2016

Rollover Hours to New Year

January 2017
Eligible Bal. Sick Hours Used Available Bal. Eligible Beginning Bal. Available Bal. Before Sick Hours Used Available Bal. After Eligible Ending Bal.
42 0 24 42 24 16 8 26

Part Two: Employee Setup:

When adding an accrual to an employee record, note the (4.) annual depletion rollover calendar field. A date will automatically pre-fill into the rollover calendar once an employee has been assigned. The date that is pre-filled depends on what rollover type (anniversary or calendar) was associated with the accrual during the initial setup in administration. See part one to review administration setup. 

*Note- Remember that this functionality is specifically tied to location based accruals. Thus if a California Sick Leave accrual is added to an employee that resides and works in Minnesota for example, no date will pre-fill into the rollover calendar. Need help understanding location based accruals? Check out this article.

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