Learn where to find accruals and how they are calculated for your payruns in Back Office Suite for Leave Management.
Overview
When your payroll is calculated, the accrual amounts are calculated based on a rate and are added to the employee’s balance as earned leave or accrual.
Employees are entitled to some days of leave, called initial entitlement, per leave type as soon as they are assigned to a Leave Policy. Accruals are when an employee earns leave time; this is called the accrual basis. An accrual basis is how the accrual is earned based on the employee's set payout (salary or hourly). The accrual basis is based on how you created your Leave Type.
Leave is also known as vacation days or holidays.
Before you start
Here are some things you must do before you start:
- You must create a Policy Item and a Leave Policy.
- Make sure you have all the permissions that are required.
Understanding and viewing accruals
Accruals for Leave Management are based on entitlement, accrual, and accrual basis:
Accrual terminology table
| Terms | What it is | How it works |
| Entitlement, initial entitlement | The leave amount is given from the start of a Leave Policy (initial entitlement) and any leave left for an employee to use. | Mike is initially entitled to 15 days of leave a year, and he uses seven of them. Mike’s remaining entitlement is eight days that he can use. |
| Accrued, accrual | The amount of leave earned (accrued) up to the set initial entitlement amount. | Ahmad accrued 28 days of leave because he worked full-time during the per-weekly payroll period at his company. |
| Accrual basis | The amount of accrual earned is based on a salary or hourly amount. | Gabriella is salaried, so her accrual basis is accrued per pay. Lee is paid hourly, so her accrual basis is accrued based on how many hours she works. |
To view accruals:
- Log into your TrackTik Portal.
- Select Dashboards.
- Choose HR & Payroll.
- Under Payroll, choose Prepare Payrun.
- Look for a pay schedule and select Details / Prepare.
To see any accruals, you must have a record of days the employee worked by Leave Type.
- Select the Accruals tab.
You can now see the Accruals view:
-
ID
Employee ID. -
Last name
The last name of the employee that the Leave Policy and Policy Items are related to. -
First Name
First name of the employee that the Leave Policy and Policy Items are related to. -
Leave Policy
The specific Leave Policy that’s related to this accrual. -
Leave Policy Item
The specific Policy Item related to this accrual. -
Accrued
Number of accrued hours. -
Total
Number of total accrued hours.
Accrual entitlement is updated for all Back Office Suite and TrackTik SHIFT balances only when you approve and lock the payrun.
Understanding calculations for accruals
An accrual calculation starts when you do a payrun. When a payrun is done, all leave items that must be calculated on an accrual basis are calculated. The accrual amount is posted (updated) to the corresponding balance only when the pay run is frozen or finalized (no more edits can be made to the pay run).
When the pay run is finalized, the accrual amount is recorded in the system as an accrual (adjustment) to the balance, with the source being payroll.
From a visual perspective, you and any employees can see the balance at the decimal level (per the accrual rules). The balance is shown in days and hours. As data and accruing calculations are done and stored in hours, the source of truth is the hours.
Accruals use two mathematical equations:
-
For hourly employees
Leave accrued in hours equals the hourly pay rate multiplied by the number of approved hours. -
For salaried employees
Leave accrued in days equals the accrual entitlement divided by the number of pay periods in a year.