Advanced Settings

When you create a Time Off policy with an accrual setting of "Accrues," there are advanced settings that you can set up. These settings may have accounting, compliance, or legal implications, so please ensure you understand the impact of the changes you make.

This article will explain each of the settings in more detail:

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Seniority Increase – 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.  Screen_Shot_2022-06-06_at_2.22.20_PM.png

Note

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.

Prorate First Accrual – 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. 

Year-End Balance Cap – Use this field to limit how much of an employee's time-off balance can be carried forward each year at a specified date such as your fiscal year-end or the calendar year-end.

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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.

Max Balance Cap – In this field you can limit how high an an employee's time-off balance can get through out 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 carry over amount to ensure employees get the correct amount of time off amounts. 

Allow Negative Balances – Since employees accrue time off throughout the year, when they take time off before they've accrued it, this results in a negative balance.

This field allows you to set a cap of how negative an employee's balance can get which can help you prevent employees from putting themselves into too much of a negative balance by requesting too much time off before accruing it.

Waiting Period – Use this field to prevent newly hired employees from booking time off too soon after their start date. They will still be accruing time off, however, this field limits when they can start taking time off. Note that they will still be able to request time off after the waiting period. 

Limit Request Length – Use this field to determine how short or how long a time off request can be.

  • 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.

  Discover more about Time Off

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