Managing Paid Time Off (PTO) effectively is crucial for any organization. This article guides you through setting up PTO plans in your HR system, covering various scenarios like accrual types, probationary periods, and time-off requests.

Steps/Procedures

1. Select Plan Type:

   • Choose between 'Request only' (no accrual or balance, e.g., jury duty, bereavement) or accrual-based plans.

2. Determine Accrual Type:

   • By Payroll: Updates during payroll finalization (typical).
   • By Calendar Date: Suitable for yearly lump sum allocations without continuous accrual.

3. Configure Probationary Periods:

   • Set rules for when employees can start accruing or requesting time off.

4. Accrue on No Pay Decision:

   • Decide if employees should accrue PTO when not receiving a paycheck (usually not).

5. Carry Forward Limits:

   • Choose whether to enforce carry-forward limits on unused PTO.

6. Display PTO Balance:

   • Opt to show PTO balance on pay stubs.

7. Set Up Based on Employee’s Years of Service:

   • Determine accrual rates based on employee's anniversary date or hire date.

8. Define Annual Settlement Period:

   • Settle based on the calendar year or employee's anniversary.

9. Assign Pay Codes:

   • Link PTO to specific pay codes, especially for hourly accrual plans.

10. Time Off Requests Settings:

    • Set parameters for how and when employees can request time off.

11. View and Edit Rates:

    • Adjust rates for new hires in their first year and for subsequent years.

Troubleshooting

• Probationary Period Warnings: Ensure probationary settings are correctly configured to prevent premature requests.
• Carry Forward Errors: Check limits if there are issues with PTO carryover.
• Accrual Rate Miscalculations: Review and adjust accrual rates if discrepancies arise in PTO balances.

Related Resources/Links

• Managing Employee Time-off Requests
• Adjusting Payroll Settings for PTO
• Employee Onboarding and Probationary Periods