How do I capture an employee's hourly PTO cashout when they leave?
Two best practice suggestions:
- Enter PTO Payout hours onto the employee's last timesheet. Employees can only have one timesheet per timesheet period.
- Manually zero out the hours in the employee's accrual plan and manually enter the payout amount in the payroll file to pay the employee.
Enter PTO Payout Hours
- Set up a new Pay Code (i.e., PTO Payout). It should be marked as Additional Pay (Undiluted).
- Add the PTO payout hours to the timesheet via an admin adjustment after the timesheets are LOCKED (must be an Admin to do this).
- Consider using Employee Types to restrict who would have access to see this Pay Code on timesheets, so active users cannot erroneously charge to the Pay Code.
- The hours will need to be entered before or on the end date of the employee's accrual plan.
Adjust Accrual Plan
- Go to the employee's profile, select the People > List > List tab - Edit Pencil icon, then Accruals > Adjust in the left menu.
- Enter negative hours to cancel out the employee's accrued balance.
- Make sure to manually calculate the payout and include it when payroll is submitted to your payroll provider.