Title: Best Practice if you want to automate full accruals for partial periods
This document illustrates how to configure and administer an accrual plan to give full accrual amounts when a person has only worked a partial period. Leave accruals in Unanet are set to prorate if a person’s Hire Date does not sync with the accrual period. For example, if a new hire begins on the 7th of a month for a semi-monthly company, Unanet will normally prorate (7/15 * rate) the accrual amount for that period. Some payroll systems, such as ADP, do not prorate and instead give the user credit for the entire period (15/15 * rate). The following configuration is needed in Unanet.
What’s covered in this document:
Understanding the leave accrual calculation in Unanet vs. your payroll system
Before implementing this process, it is important to first determine if it is appropriate for your organization. Here is a list of things to consider:
- Do I want to use Unanet to accrue a leave balance for my employees?
- Do I maintain and accrue leave balances for my employees in another system?
- Does the other system prorate the accrual rate based on Hire Date, or does it always give credit for the entire accrual period (see example in brief description paragraph above)?
- Is the difference between the other system and Unanet numerically significant to alter the normal accrual process in Unanet?
If the answers to the above questions are all “Yes,” this document will instruct you on how to sync the accrual rates between the two systems.
Understanding the leave accrual calculation in Unanet
Unanet prorates leave accruals based on Hire Date or ACCRUAL BEGIN DATE. Below are some examples of why you may want to choose this process to align Unanet accruals with payroll accruals.
- A user joins in the middle of a pay period. Your employees earn 5 hours of PTO per pay period. Unanet gives the new employee 2.5 hours of PTO accrual for the first pay period if the Hire Date or ACCRUAL BEGIN DATE is specified as mid-period.
- Your accrual plan has multiple tiers of accrual rates. In years 1 through 5, they accrue 5 hours per period, and in years 6 through 10, they accrue 7 hours per period. Your accrual period is bi-weekly, beginning every other Monday. An employee’s 6-year anniversary rate falls on a Wednesday. Unanet will accrue the first 2 days of the period at the old rate (5 hours per period) and the remaining 12 days at the new rate (7 hours per period).
- Your company has an annual accrual plan, based on calendar date, to credit 16 hours of personal leave to all employees. An employee is hired on May 1st and receives a prorated balance for the year of 7/12 * 16 or 9.33333 hours.
Understanding the leave accrual calculation in another system, such as ADP
- Check the calculation of your other system to determine how leave is accrued in the first or last periods of employment. In a system such as ADP, when a new hire joins in the middle of a period, or leaves in the middle of a period, they receive the full hours for the entire period.
- When you have multiple accrual tiers based on term of service, and an employee’s anniversary date of hire falls on any day other than the first day of the period, a system such as ADP will still give them the entire accrual amount.
Configuring the Unanet accrual to mirror the other accrual system
There are two primary steps in syncing the Unanet accrual with your system. The first is determining Hire Date. Because the Unanet Hire Date or ACCRUAL BEGIN DATE is the key driver in determining the accrual rate, this process will alter the Hire Date to coincide with the Begin Date of your accrual period. If you are semi-monthly, this means back dating the Hire Date to the 1st or 15th of the month. If you are weekly or bi-weekly, this means back dating the Hire Date to the day of the week your period begins (Monday or every other Monday). If you wish to maintain the “real” Hire Date in Unanet, you will need to create a User-Defined Field with the date format, and enter the “real” Hire Date. The second step is periodically adjusting the Hire Date field in Unanet to coincide with the Begin Date of your accrual period. If your company is of a smaller size, you can manually do this. If your company is large, you can automate this process with a custom export/import process.
Manually adjusting the Hire Date
If your company is smaller in size, you can manually reset their Hire Date to coincide with the Begin Date of your accrual period. If the accrual is semi-monthly, this will be the 1st or 16th of the month. If weekly or bi-weekly, this will be the Begin Date of the period.
NOTE: Check the accrual period from Admin > Setup > Accrual periods, as the accrual period sometimes differs from your time period.
In the screenshot above, the Hourly 150 plan posts on a Bi-Weekly basis, beginning with 5/1/2011, which was a Sunday.
Automating the Hire Date adjustment with an export/import process
Assume our employee started on 12/1/2010, which was a Wednesday. You would then need to back date their Hire Date to the prior Sunday, 11/21/2010 or 11/28/2010, depending on which was the start date of the period. This calculation can be tedious, especially when multiplied by your number of employees. To automate this calculation and process, you can use a Unanet export template to derive the Hire Date.
To use the referenced export template, save the attached file and import it into Unanet via Admin > Export > Import > Browse.
The Unanet Administrator is also responsible for determining how often the hire date needs to be adjusted. Normally this would be an annual task run at the beginning of each year.