How can we help?

Paid Time Off: Basic information

Here's some basic information to know about how paid time off policies work. You can set up a variety of policies which include limited PTO, unlimited PTO, paid sick time off and holiday pay policies. If you need to add employees to an existing policy, follow these steps.

  • Time off only accrues on regular payrolls.
    • If you process an off-cycle or bonus payroll, you'll need to manually update the time off "Current Balance" for that employee if time off should have accrued. You can do this in the employee profile by clicking edit next to their time off policy. 
  • PTO policies don't automatically restart at the end of the year. Some state regulations prohibit time off balance resets, so balances will not automatically zero out at year's end unless the admin creates a specific policy to do so, or manually zeroes out the balance themselves.
  • If an employee uses more vacation time than he/she accrued, the PTO balance will go into a negative amount. You can review any employee's balance in the employee's details screen under the time off tracking section.
  • When you dismiss an employee and run a final termination payroll, on the time off screen you'll have the option to pay out any remaining paid time off hours. Check out this article for dismissal paycheck requirements (by state).
  • If an employee is rehired, they'll automatically regain any sick balance that they had upon their termination. 
  • In order to apply accrued hours off to a payroll, you must first create a corresponding policy. For example, to apply sick hours taken, you'll need to have already created a sick hours policy before you run the payroll.  
  • Hourly vs. Salaried employee PTO recording during payroll:
    • Hourly: Enter the actual hours worked in step one of the payroll run, then enter the actual PTO hours taken in step two of the payroll run where PTO is entered.
      • For example: If an hourly employee should be paid for a total of 71 hours worked, but 12 of those hours were PTO, you'd enter 59 hours in step one of the payroll run, and 12 hours in step two (PTO page).
    • Salaried: Leave the standard hours worked as-is on step one of the payroll run, then enter the PTO hours taken in step two (PTO page) of the payroll run - the PTO hours entered will automatically reduce the regular hours worked/reported.
      • For example: If your salaried employee usually works 80 hours a week but took 6 hours of PTO during the pay period, leave their standard 80 hours as-is on step one of payroll, then enter 6 hours of PTO in step two of the payroll run - their paystub will automatically adjust to reflect 74 regular hours works and 6 PTO hours paid.

If you're an employee looking to view your balance, click here.

Payroll, benefits, HR and more.