PTO Accrual Based on Hours Worked

If your company uses a policy type that accrues based off the hours your employees work, you’re in luck. If you use Zenefits Time & Attendance and/or Zenefits Payroll, simply head over to the Time Off app and create a new policy under the Settings tab. 

As you set up the policy rules, you’ll see an option to accrue hours based on your hours worked. Make sure to decide whether or not you want PTO to be included in the accrual too.

If you choose to enforce a time off waiting period, and the waiting period ends in the middle of a pay period, Zenefits will begin calculating the accrual for the rest of the pay period as follows: add up the total hours in the pay period, then divide by the number of days in the pay period. If this doesn't accurately reflect how many hours were worked, you can adjust the worker's balance using the steps here.

Once your policy is complete, how your hours accrue will depend on what apps you have. 

If you have Time & Attendance but do not use Zenefits Payroll, PTO hours will accrue for your employees once the pay period ends and is submitted to payroll. 

If you use Time & Attendance and Zenefits Payroll, PTO hours will accrue for your employees once the pay run moves to Paid status. Hours will accrue based off the Regular and Overtime earning types. If you chose to add PTO to the accrual, they will be included if you pay out PTO earnings. 

If you only use Zenefits Payroll, PTO hours will accrue for your employees once the pay run moves to Paid status. Hours will accrue based off the Regular and Overtime earning types. If you chose to add PTO to the accrual, they will be included if you pay out PTO earnings. 

Please note that PTO accrual will not occur on off-cycles and accruals will not be included in any other earning type other than Regular and Overtime earnings.

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