Calculating PTO accruals by hours worked offers flexibility, @Saphire605.
The by hours worked accrual rate ensures that employees only earn time off by the number of hours they actually work. This may result to earning less than or more than the other rates would provide. This is particularly great for employees who work a variable number of hours per year or take periods of unpaid leave. By using this rate, you can have the accrued time off only reflect that time spent at work.
Determining whether your employee should get 6 hrs or 8 hrs credit on the day of their PTO depends on your company’s Paid-Time-Off policy. Also, I’d recommend consulting your accountant so you’ll be guided accurately in setting and providing PTO to your employees.
Feel free to visit us here in the Community if you have other questions about provisioning your employee’s with Paid-Time-Off. I’m always here to help.
