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Administrator Guide
Last Updated: 2023-06-23
Concept: Accrual and Time Off Limits

Concept: Accrual and Time Off Limits

You can define accrual and time off limits using 2 approaches. You can define limits for:
  • A time off plan, causing the associated accruals and time offs to have the same limits.
  • Individual accruals and time offs that override any limits set for the plan.
In addition to limits, other factors can impact a worker's accrual and whether time off is paid or unpaid:

Timing of Accrual Processing and Limits

The
Accrual Frequency Method
 field on the time off plan definition or the accrual definition controls the timing of accrual processing. If accrual processing occurs:
  • At the beginning of the period, Workday adds the accrual to the time off plan balance. This addition applies accrual limits before subtracting time off. It checks the lower time off limit after subtracting the time off.
  • At the end of the period, Workday subtracts time off from the time off plan balance. Workday checks the lower time off limit, adds accruals, and then checks the accrual limit.
  • Midperiod (a custom accrual that you create), Workday:
    1. Subtracts time off taken before the accrual date.
    2. Checks the lower time off limit.
    3. Adds the accrual.
    4. Checks the accrual limit.
    5. Subtracts time off taken after the accrual date.
    6. Checks the lower time off limit.
Processing accruals before time off typically results in workers reaching accrual limits sooner, but causes time off calculations to reach lower limits later.
When a time off and an accrual fall on the same day, the accrual adds to the balance before deducting time off. Workday processes carryover that occurs on the same day first.
Example: Timing of Accrual Processing and Upper Accrual Limits
In this scenario, the Vacation Time Off Plan has an upper limit of 120 hours. Workers accrue 12 hours of time off each month. Tony has an initial Vacation balance of 110 hours and requests 8 hours of time off.
  • When the
    Accrual Frequency Method
     is
    Start of Period
    , Workday:
    1. Adds the current period accrual of 12 hours to the initial balance of 110 for a total of 122 hours.
    2. Applies the limit rule and determines that the balance exceeds the limit by 2 hours.
    3. Reduces the accrual by 2.
    4. Reduces Tony's overall balance by the 8 hours of time off, resulting in a final balance of 112.
  • When the
    Accrual Frequency Method
     is
    End of Period
    , Workday:
    1. Subtracts the 8 hours of time off from the initial balance of 110 for a total of 102 hours.
    2. Adds the current period accrual of 12 hours for a total of 114.
    3. Applies the limit rule and determines that the balance doesn't exceed the limit, making his final balance 114.
Example: Timing of Accrual Processing and Lower Time Off Limits
In this scenario, the lower limit for a vacation plan is -8 hours. Workers accrue 12 hours of time off each month. Julia has an initial vacation balance of -4 hours and requests 8 hours of time off. Workday processes the time off as follows:
  • Accrual Frequency Method
     =
    Start of Period
    1. Adds the current period accrual of 12 hours to the initial balance of -4 for a total of 8 hours.
    2. Reduces her balance by the 8 hours of time off for a total of zero.
    3. Applies the limit rule and determines that the balance doesn't go below the lower limit. Consequently, her entire request processes as paid time off.
  • Accrual Frequency Method
     =
    End of Period
    1. Subtracts the 8 hours of time off from the initial balance of -4 for a total of -12 hours.
    2. Applies the limit rule and determines that the balance goes below the lower limit by 4 hours. Consequently, only 4 hours process as paid time off.
    Set the
    Maximum Unpaid Time Off Units Allowed
     validation rule to zero to prevent requests for unpaid time off.

Accrual Priorities

The order in which accruals process, combined with an upper accrual limit, can affect a worker's accrued time off.
Example: Accrual Priorities and Upper Accrual Limits
In this scenario, 2 accruals, both processed at the beginning of the period, contribute to the Paid Time Off plan:
  • Vacation accrues at 10 hours each month. Priority = 1.
  • Sick time accrues at 6 hours each month. Priority = 2.
  • Upper limit, inherited from plan = 120.
Joan's current Paid Time Off plan balance is 106 hours. Because vacation accrual processes first, she reaches the upper accrual limit before sick time processes. As a result, Joan forfeits 2 hours of Sick time accrual.
Priority
Current Balance: Paid Time Off
Accrual Amount
Balance + Accrual
Upper Limit
Hours Forfeited
1 (Vacation)
106
10
116
120
Zero
2 (Sick Time)
116
6
122
120
2

Time Off Processing Order

The sequence in which time offs process, combined with a lower time off limit, can affect the number of days or hours treated as paid or unpaid time off.
Example: Time Off Processing Order and Lower Time Off Limits
In this scenario, Vacation time off and Sick time off belong to the Paid Time Off plan. Vacation time off has a priority of 1 and a lower limit of -8. Sick time has a priority of 2 and a lower limit of zero.
Joan has an available balance of 8 hours in the Paid Time Off plan. He takes 16 hours of Vacation time plus an additional 8 hours of Sick time. Vacation hours process first, reducing Joan's available balance to -8. Because she doesn't exceed the lower limit, her Vacation days process as paid time off. However, no hours remain in the plan balance to cover Joan's sick time, so the 8 hours of sick time are unpaid.
Priority
Current Plan Balance
Time Off Taken
Balance - Time Off
Lower Limit
Hours Paid
1 (Vacation)
8
16
-8
-8
16
2 (Sick Time)
-8
8
-16
Zero
Zero