Title: Accrual for the Full Period if only a partial period is worked
Unanet prorates the accrual amount based on accrual start dates as well as the hire dates. If an employee is hired in the middle of a period and associated with an accrual plan that day, he/she will accrue for the partial period based on the days worked in that period. Some companies allow their new employees to accrue for the whole period, which requires a unique setup in Unanet. This document describes the best practice on how to allow the employee to accrue for the full period when he/she is hired in the middle of a period.
What’s covered in this document:
Role of the Hire Date and Accrual Begin Date
Start date and Hire Dates for a Person Accrual Plan association are important because Unanet will prorate the accrual amount if either of these dates does not line up with an accrual plan period.
For example, if a person is hired on March 10 in a monthly accrual plan (a plan starting March 1), he/she will receive only 71% of the accrual amount for that month because the following calculation algorithm is being used behind the scenes:
Hire date is 10 days into a 31 day month = 21 days in the month
21/31 = .7097
If the company’s policy is to accrue 15 hours when the full period is worked, the new employee will earn 15 * .7097 = 10.645 hours for the first month if the hire date or ACCRUAL BEGIN DATE do not line up with the first of the month.
Hire Date also impacts the calculation of hours accrued when the date hits an accrual escalation point in the same manner.
Accrual for the Full Period if only a partial period is worked
If your company policy allows the new hire to accrue for the full period, and does not allow the prorating to occur, then as the administrator, you can choose to change all hire dates in Unanet to the first date of an accrual period.
At this point, you're done. If, however, you would like the hire date field on the person’s Profile to store the true hire date and want the person to accrue the full amount, the best practice includes the following steps:
- In the Person Profile > Accrual > +Association w/ Accrual Plan link, choose the 1st day of the next time period as the ACCRUAL BEGIN DATE.
- Associate the plan with the proper project and the task.
- In the INITIAL BALANCE section, select the ENTER BALANCE radio button, and put in the full accrual amount for the 1st period as the start balance.
Teddy Davis is hired on 3/10/2019; the company has a monthly time period and allows the new hire to accrue for the full period of 15 hours per month.
As the administrator:
Navigate to People > List > List tab > Edit pencil icon > Accruals > +Associate w/ Accrual Plan
Put in 4/1/2019 as the ACCRUAL BEGIN DATE, choose ENTER BALANCE, enter 15 hours, and click Save.
The accrual association creates an assignment in the PTO project. If, however, the new hire needs to take time off before the accrual association begin date, the admin needs to manage it separately by creating an assignment for the time period and adjusting the initial balance.
The People (Manager) accrual reports allow you to see the accrued and taken time, the projected accruals and the leave liability (if you also have Cost Rate Manager role). An employee can see the accrued and taken time as well as their projected accruals via the Time Dashboard Quick Reports.