Setting up a time off policy can sometimes feel like a complex equation. Thankfully, Humi helps simplify the process by offering Advanced Settings for Time Off Policies that include an Accrual.
When you create a Time Off policy with an accrual setting of "Accrues," there are advanced settings that you can configure. These settings help you customize your policies to fit the precise needs of your company.
These settings may have accounting, compliance, or legal implications, so please ensure you understand the impact of the changes you make.
Understanding Advanced Settings
This article will explain each of the settings in more detail. Use the dropdowns below to learn about each option and how it affects your policies.
Use this setting to set up automatic seniority increases based on the number of years a given employee has worked at your company (their hired date is the anchor point in time).
Click the "+ Add Level" link, then enter the number of years and the amount the accrual should increase in these fields.
Seniority increases will be prorated, according to recommended approach by the National Payroll Institute (NPI) (formerly the Canadian Payroll Association [CPA]). If you'd rather not prorate, or prorate with a different mathematical approach, you can manually give employees seniority increases by assigning them a different Time Off Policy, where you can create a specific effective date, and balance.
Use this switch to determine if Humi should prorate the first accrual.
For example, if an employee is hired and starts in the middle of the period, and this switch is turned "off," the employee will get the full accrual amount for the entire period, despite having only worked for a part of it.
If the switch is turned "on," Humi will prorate the accrual amount based on the recommended approach of the National Payroll Institute (NPI), which takes into account working days based on an average of 260 working days per year. This setting is most commonly used.
- Enter the number of days that can be carried forward in the "Cap At" field.
- Enter the date when the adjustment should be made in the "Cap on Date" field.
- Enter the number of days after the "Cap on Date" that the balance must be used by or the employee will lose the time off in the "Expire After (days)" field.
For example, if you entered a five-day cap and chose May 1st as the "Cap On Date," you would see an adjustment transaction for employees on the last day of April, reducing employee balances to the cap specified in this field.
This ensures that the balance is officially capped to the desired amount from the start of the day on May 1st, i.e. the end of the day on April 30th.
In this field, you can limit how high an employee's time-off balance can get throughout the year.
For example, if you put the max balance cap to 5 days, then the employees will accrue up to 5 days, but any accruals that exceed 5 days will immediately be adjusted to bring their time off balance back down to 5 days.
If you allow employees to carry over time off days, you can set this to the sum of the yearly accrual amount plus the carryover amount to ensure employees get the correct amount of time off amounts.
This setting allows you to decide whether an employee can borrow time off from the following year and, if so, how much. This can help you prevent employees from putting themselves into too much of a negative balance.
With the Setting Off: If an employee has 10 days available each year, they can request up to 10 days off at any time during that accrual year. If they haven't accrued the full 10 days yet, this will result in a negative balance that they are "paying back" until the year's end.
With the Setting On: If an employee has 10 days available each year, they can request those 10 days off at any time during that accrual year plus the pre-determined limit of additional days allowed. Any days requested beyond the initial 10 days will be subtracted from the following year's balance. This will result in a negative balance that they will be "paying back" until all the days taken are accrued.
- Use Min. Day Length to specify the smallest increment of time an employee can book on any day for example 0.5 days, 1 hour, 1 day etc.
- Use Max. Total Length to specify the maximum days a single request may have. For example, if you don't want your employees to consecutively be away for longer than one week, you could put "5" days in this field.
Don't forget to hit save once you've configured all the necessary fields for your new Time Off policy.
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