How to Connect Time Off to Payroll

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When an employee takes time off, it’s important to have an easy record of how it affects their pay. Humi makes this simple by allowing you to seamlessly connect Time Off with Payroll. Keep reading to learn how.

How does the Time Off to Payroll integration work?

The Time Off and Payroll integration is designed to help keep your employee’s hours and pay seamlessly connected. To ensure your success, there are two important things to note:

  1. Employees added to the integration must be synced to payroll. To learn how to add an employee to Payroll, click here.
  2. All adjustments to your employees’ time off will still be managed in the Time Off module. To learn how to manage Time Off, click here.

 

Before you enable the integration

Before enabling the Time Off and Payroll Integration, it’s important to review your Time Off Type Settings. The integration will use the Hours Per Day in your Time Off Type to determine the number of hours that are sent to Payroll when an employee books time off.

To learn more about Hours Per Day, click here.

 

How to enable the Time Off and Payroll Integration

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  1. In Time Off, head to the Types & Policies tab, and find the Type of Time Off you’d like to connect to Payroll.

  2. Click the three dots in the top-right and select Edit Type from the dropdown.

  3. At the bottom of the first section of the edit page, select how you pay your employees for this type of time off. There are three options:

    1. Paid Time
    2. Unpaid Time
    3. Time Worked
  4. Once you’ve chosen the type of pay, scroll down to the Payroll Integration section.

  5. Choose the applicable Payroll Income Type from the dropdown. These options will differ depending on the setting you chose in Step 3 above.

    Don’t see the income type you need?

    If you haven’t set up the correct income type yet, click here to learn how.

    How It’s Paid Available Income Types Notes
    Paid Time
    • Sick Pay
    • Vacation Payout - Time Off
    • Bereavement Leave
    • Flex Time
    • Personal Time
    • Salaried employees will have their regular hours adjusted to account for any "paid time" taken.
      However, the total hours shown on their paystub will remain unchanged.

      Example: Let's say a salaried employee earns 80 hours biweekly, resulting in a gross pay of $2,000. If they decide to take 8 hours of vacation time off, their paystub will display 72 regular hours and 8 vacation hours, ensuring the total remains at 80 hours.
    Unpaid Time
    • Unpaid Time Off (Salaried)
    • Approved hours for this time off type for hourly-paid employees will not be transferred to Payroll.
    • Approved hours for this time off type for salaried employees will reduce their pay and insurable hours on the relevant pay period.
    Time Worked
    • N/A
    • This time off type cannot be integrated with Payroll – approved hours will not be transferred to Payroll.

      Choose the applicable Payroll Income Type from the dropdown. These options will differ depending on the setting you chose in Step 3 above.

  6. When you’re ready, click Save to enable the integration.

  7. Any approved hours under this Time Off Type will now be transferred to Payroll automatically!

 

How to Disconnect Time Off and Payroll

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Disconnecting Time Off and Payroll is super easy. Follow the steps below to learn how to turn off the integration:

  1. In Time Off, head to the Types & Policies tab, and find the Type of Time Off you’d like to connect to Payroll.
  2. Click the three dots in the top-right and select Edit Type from the dropdown.
  3. Scroll down to the Payroll Integration section.
  4. Choose “Select an option” from the dropdown.
  5. This will disable the Payroll and Time Off Integration. Hours logged in Time Off will no longer flow into Payroll.

Important Note

Before you can disconnect Payroll and Time Off, you’ll need to ensure that all pending hours (Time Off Requests) have either been approved, denied, or deleted and that there are no hours assigned to an open pay period.

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