For customers of the PTO module.

If you allow unused time to carry over from one year to the next, this article explains how to configure your policy to allow that.

Carryover is calculated on the reset date specified on your PTO policy. If you set the reset date to be January 1, for example, then on January 1, the system will carry over whatever amount is allowed from the person's ending balance as of 12/31. Any hours beyond the allowed carryover amount will be lost.

Carryover can be defined as a specific number of hours, e.g. 40 hours. Regardless of how much a person earns per year, using hours will allow only the number of hours you specify to carry over from one year to the next.

If you have years of service tiers defined (which means people are earning different amounts per year based on tenure), you may want to make carryover relative to the annual amount earned. Defining carryover as a percentage allows you to do this.

For example, if person A earns 80 hours per year and person B earns 120 hours per year, you could set the carryover percentage to be 100% which would allow person A to carry over up to 80 hours and person B to carry over up to 120 hours.

By default, any hours carried over at year-end will be carried over into the same account. Some company policies, however, allow carryover to be carried into a separate account. The policy settings let you choose which account hours will carried into. You can also add multiple carryover rules so that, for example, the first 20 hours of unused vacation carry over as vacation, and the next 20 hours carry over into a medical savings bank.

If you use a percentage to define the carryover amount, that percentage can be based on one of two different options.

"Yearly Accrual Amount" means the allowed carryover will be limited to the annual amount earned. With carryover set at 100% of the Yearly Accrual Amount, a person who earns 80 hours per year can only carry over 80 hours, regardless of how many hours are in their account.

"Ending Balance" means the allowed carryover is based on whatever number of hours the person has in their account as of the end of the year, regardless of their annual amount earned. With carryover set at 100% of the Ending Balance, a person who earns 80 hours per year but who has an ending balance of 100 hours will be allowed to carry over all 100 hours.

To make sure carryover transactions are 100% transparent, the system will first zero out a person's ending balance. Then in a separate transaction, the carryover amount will be added back to that person's account.

Please contact our customer success team for additional assistance.