Have you finished step two?Before jumping into this article, if you haven't read Step 2 – Accrual Settings, we strongly recommend reading it first. |
This step is all about what happens at the end of an accrual year. You’ll have a chance to choose the desired carryover amounts and whether an employee can max out their balance for their time off under this policy.
Carryover
First, you’ll need to choose what kind of carryover employees will have access to. There are two primary options:
This option will cause all accrued time off under this policy to reset on the specified date, regardless of whether the employee has used it all.
Negative balances will carry over
Only positive balances will be reset at the beginning of the year. Negative balances (if applicable) will be carried over to the next year and calculated into the new balance.
This option will cause unused accrued time off under this policy to carry over into the following accrual year. This means that employees who don’t use up their accrued time off within the year will be able to use it later.
You can choose one of two options:
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Limited Carryover
If you select Limited Carryover, you can also designate the following:
- Limit the amount that can be carried over
- Choose a date that carryover occurs
Your carryover cap date needs to align with the accrual schedule you’ve selected. - Set an expiration date for the hours that were carried over
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Unlimited Carryover
If you select Unlimited Carryover, employees can carry over their entire time off balance, regardless of whether it is positive or negative, into the next accrual year without any limitations.
Maximum Accrued Balance
This setting allows you to determine how much time off an employee can accrue at one time under this policy per accrual year.
For example, if you limit the balance to 30 days then employees can accrue up to 30 days, and then their accruals will stop until their balance falls below the maximum balance again.
If you allow employees to carryover time off from the previous year, you can use this setting to ensure they’re only eligible for a certain amount of time off before the limit is reached.
When you’re happy with your settings, click Next to move on to Step 4 - Review Policy Settings.