Getting set up for PTO with Justworks is easy. From your main dashboard, click the link under "HR."
Next, select the days that your company recognizes as holidays. Justworks will automatically designate these same days as holidays each year. Our software knows that while Thanksgiving is on Thursday, November 28 in 2019, it will be on Thursday, November 26 in 2020. You can also add custom holidays to your holiday schedule!
Next, select the days that your company recognizes as holidays. Justworks will automatically carry these days over to the next year. Our software knows that while Thanksgiving is on Thursday, November 23 in 2017, it will be on Thursday, November 22 in 2018.
Setting up a new policy
Create a time off policy that fits your business. In the basic setup stage, you are able to fill out some general information about your PTO policy.
Choose the name that you would like to call your policy (this is how it will appear to your employees).
Policy Effective Date:
Next, select the start date of the policy for your employees.
Note: It is important to take into account that choosing a date in the past will retroactively add time to your employee’s PTO balance.
Choose the type of policy you want to create. On the platform, you will see the following options:
- Vacation Policy: This can be used as a general PTO policy.
- Sick Leave: Use this to track sick days.
- Other: Some common policies include, volunteer days, bereavement, and floating holidays.
- NON-US employee: This policy will only allow non-U.S. employees to request time off. PTO balances will be neither tracked nor calculated.
Note: Please be aware that, depending on the locations in which your employees work, you may be required to pay out any accrued, unused vacation to those employees when they leave your company. Additionally, many jurisdictions have laws that may require you to provide sick leave to employees who work within those jurisdictions. If you’re unsure which laws apply to your employees, please reference resources available via ThinkHR, and contact legal counsel accordingly.
In this section, you will need to decide when the policy cycle should restart and how your employees accrue PTO.
Annual PTO Cycle
Each policy’s PTO balance runs on an annual cycle. There are two choices available for the policy cycle:
- The Calendar Year: This policy runs from Jan 1–Dec 31 and the annual PTO amount you assign will restart every January 1.
- Employee's work anniversary: The annual PTO amount you assign will restart each year on the anniversary of the date your employee was hired.
PTO Grant types
On the platform, you are able to choose from one of the following grant types:
- Days per year - accrued: This allows you to assign a number of PTO days per year to be accrued at a specific rate per day.
- Days per year - granted upfront: Here you are able to assign a number of PTO days per year to be granted upfront at the start of the cycle.
- Flexible or Unlimited: This structure does not place a limit on PTO requests, however, a company can decline a PTO request made by an employee.
Note: For PTO policy purposes in Justworks, default work week runs Monday through Friday, 8 hours each day, for a standard 40-hour work week.
Here you are able to set some additional preferences for your policy.
If you would like to give more time off to your employees based on their length of service at your organization, you can add tenure levels.
For a policy on the calendar year annual PTO cycle, tenure increases will occur on January 1, after your employee’s 1st work anniversary. For example, an employee with a start date in February 2019, will receive their first tenure increase on January 1, 2021. For a policy on the employee work anniversary annual PTO cycle, tenure increases will occur on the employee’s work anniversary.
You’ll be able to select whether or not employees are allowed to carry over days from one year to the next. If you allow carryover, you will be able to limit the number of days that carry over.
In certain states, like California, employers may not limit the amount of PTO that carries over from one year into the next. If you’re unsure which laws apply to your employees, please reference resources available via ThinkHR, and contact legal counsel accordingly.
While creating your PTO policy, you can choose whether or not the time your hourly employees take from this policy are automatically included on their timecards once approved.
If you prefer to not have this time automatically sync in their timecards, you can select ‘unsync.’ You can change this setting at any time.
Assigning policies to specific employees
After the policy has been created, you can select which employees need to be assigned to the specific policy. To help break this down, you can choose to group employees by employee type, department, or office location. For example, you can create different policies for full-time and part-time employees or give your employees in New York a different policy than your employees in California.
Finally, approve your policy and make any final adjustments to employee’s starting balances.
Editing and Disabling policies
Under ‘Time Off Policies’ section, you can go to edit and disable policies under the ‘Policy’ section.
If you need to add new employees to a policy, you can edit the policy and click through the steps to the ‘assign employees’ section.
If you need to change a policy for your employees (other than adding more people or changing the name), we recommend disabling a current policy and creating a new one in its place.
When making a new policy, make sure to record all of your employees’ current balances beforehand with the PTO Balance report. Go to the Report > PTO Balance Report and download the report so that you have your employees’ balances to input as each employee’s ‘starting balance’ in your new policy.
Disabling policies is easy. First, navigate to HR > Time off policies > Policies. From here, you should see all of your active policies. To disable, just click on the “Disable” button in the top right corner of the policy.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.