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Evo-ERP and DBA Classic >> Payroll >> PTO accrual
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Message started by cathyh on 08/12/08 at 08:51:41

Title: PTO accrual
Post by cathyh on 08/12/08 at 08:51:41

We accrue PTO which includes vacation and/or sick pay. We accrue as a percentage of hours worked up to a certain number of hours a year.
The accrual is between an expense account (Debit) and a liability account (credit). When the employee takes PTO, it is a debit to the liability account.

I can't figure out where to add this information-- The Vacation/sick GL account in the employee setup is the liability account? Where do I put the expense account for accrual?

Title: Re: PTO accrual
Post by cathyh on 08/13/08 at 09:44:56

Any help out there?? How are others using Payroll setting up PTO (Vacation+Sick) accrual?

I would really be grateful for any help!

Title: Re: PTO accrual
Post by EMI Ann on 10/14/08 at 09:03:26

We don't actually "accrue" pto; we update people at their anniversaries. Any pto unused at that time is paid out as an attendance bonus. Works well for some, others burn through it as quick as they can (but would no matter how it was given). We have our employee handbook set up to reflect that, and it is noted on annual review sheets. We do the same thing with the percentage of health insurance premium we pay vs what they pay (we have a base percentage that everyone gets, and ratchet it up with years of service.). Saves us from having to do any in depth thinking about it... It just is what it is.

Title: Re: PTO accrual
Post by cathyh on 10/23/08 at 09:47:34

We do accrue PTO as a percentage of hours worked, and I would like to set that up in Evo Payroll,mainly because we would like it to print on the paycheck.
I do not understand how to set the to date accrual though. If I put in the accrued hours as of the last pay date, what do I use for the "Next Accrual Date", the last day of the next pay period or the next Pay date? The hours to use to calculate this should be hours worked in the pay period so I am thinking the last day of the pay period. Could someone confirm this or set me straight??
Thanks!

Title: Re: PTO accrual
Post by tdlugosh on 10/23/08 at 09:59:04

We also accrue PTO per regular hours worked. A number of years ago I was (briefly)considering using the DBA payroll program. Since I couldn't figure out how to handle PTO in DBA this became another of many reasons why we decided to stay with an outside payroll service. While this doesn't solve or answer your question, it is one that has, I'm sure, been considered by many others who handle their payroll outside DBA.

Title: Re: PTO accrual
Post by cathyh on 10/23/08 at 12:19:55

Well, for us, the payroll module (I think) will do all we need it to do, which is keep track of accrued hours so that we can display that on the paycheck printout. We will continue to do our payroll PTO accrual to the GL as we do it now with Quickbooks, which is to say we will maintain the spreadsheet that we use.

That is if I could figure out how to answer the next accrual date question.....

Title: Re: PTO accrual
Post by deburr on 10/24/08 at 10:16:25

Cathy

I'm not an expert and that is why I was hoping someone that knows for sure would answer before I do. The way I understand it, and use that part of the payroll module, is that it does not post accrued vacation time to a GL account but will post the expense when it is paid out. The program keeps a tally of the vacation due in BKPRMSTR.emp.vdue. It updates that number every time a payroll is run, vacation taken or added because the next accrual date has passed. For us it adds accrued time annually on the anniversary of their D.O.H., but if you accrued by the hours worked and selected P (for pay period) in the "Accrue by" field, then that will happen every pay period. If this is the case, then you would put the next payroll date as the next accrual date. This will advance automatically to the next accrual date as specified in the "Accrue By" when you run payroll.

The Payroll "Help file" details the process pretty well. Now if you set it up and it doesn't do what you wanted to, you can go into enter employees and change those amounts (Vacation Due field) anytime without doing anything in the general ledger. That being said, you do not want to give anyone access to the enter employees screen because it is quite easy to give yourself some additional vacation time, and it would be very difficult to spot right away.

Good luck with i, and if you have any questions you would like to discuss, you can call me at 860 828-0889.

Steve

Title: Re: PTO accrual
Post by cathyh on 10/27/08 at 09:42:17

Thanks, Steve for your answer. I am still not sure whether I should use the end date of the payroll (a Saturday) or the pay date ( the following Friday). If I use the pay date, won't it use hours that are in the next pay period to figure vacation accrual? I suppose I could just experiment.....

Title: Re: PTO accrual
Post by cathyh on 11/21/08 at 14:43:56

I put the accrual date as the last day of the next pay period at the time, 10/25/08. We have since entered two payrolls, the one for that pay period paid on 10/31 and the next one pay date 11/14. These were both entered yesterday.
The accrual date still says 10/25. I though this date would advance automatically. Do I have something set up incorrectly?