PTO: Payout Accrued Paid Time Off

Updated December 17, 2024 17:53

Question:

Can accrued Paid Time Off be paid out in 7shifts Payroll when the employee has not submitted or taken time off during the payroll cycle?

Scenario:

I have employees who do not want to take their accrued paid time off but would like to be paid out for it. How can I accomplish this in 7shifts while ensuring PTO balances remain accurate?

Answer:

Yes, this can be achieved by following the guidelines below.

Key Notes:

Time Off Submission + Approval Required:
- All Paid Time Off must be submitted and approved in 7shifts to process a payout during payroll.
- Approved time-off requests will mark the employee as "unavailable" for the specified period on the schedule, even if they continue to work during that time.
Hourly Accrual Policy Limitations:
- If your PTO policy is accrual-based, the payout can only include hours accrued during the payroll period.
- The payout may not reflect the total accrual shown when running payroll since payroll is submitted after the pay period has ended.
- When submitting a PTO request for payout, adjust the hours to reflect the accrued balance up to the end of the pay period.

Process to Payout Accrued PTO:

Create a PTO Request:
- In the web app, navigate to Schedule > Time Off.
- Create a Paid Time Off request on behalf of the employee.
- Ensure the request is set within the last couple days of the pay period to reflect the total accrued PTO for that period.
Verify the Employee’s Accrued PTO Balance:
- While creating the PTO request, review the employee’s accrued PTO balance. This will show the amount available up to the end of the pay period. Enter the remaining hours in the Amount for the request.
Adjust the PTO Request (if necessary):
- If the time-off request exceeds the available accrued PTO balance for the pay period, the system will notify you and block submission of the request.
- Modify the hours in the request to match the eligible payout amount.

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