This article is about Justworks PEO and Payroll. What product am I using?
Setting up hourly accrual on the Justworks platform is simple. When creating a PTO policy, select "Accrue over time" in the “Balance Structure” section of the workflow.
Screenshot of "Accrue over time" selected in the balance structure portion of he Create new policy flow.
Then select "Accrual rate" as the accrual method. Here you are able to assign an hourly PTO accrual rate to an employee based on hours worked. You also have the option to allow your employees to accrue PTO when they’re on overtime.
Screenshot of accrual rate as the selected accrual method, with 30 hours worked as the rate and overtime accrual.
Previously, PTO accrued when timecards were approved. This meant employees could receive PTO before all hours were actually worked.
Now, PTO accrues the day after timecards are processed and is applied in a single update to ensure balances are accurate.
How does hourly accrual work for different classifications of employees on the platform?
Non-exempt employees
Hourly non-exempt employees: The calculation of hourly accrual for these types of workers, is based on the number of hours recorded in their timecards.
Note: Hourly accrual will only accrue after timecards have been approved, and will be based on the pay period they just worked.
Salaried full-time non-exempt employees: The calculation of hourly accrual for these types of workers, will be based on the assumption these employees work 40 hour work week.
Salaried part-time non-exempt workers: The calculation of hourly accrual for these types of workers, will be based on the defined standard work hours, added during the employee’s creation workflow. You are also able to add or edit an employee’s standard work hours in their “Job information” profile.
Note: If this classification of workers does not have defined standard work hours inputted on the platform, the calculation of hourly accrual will be based on the assumption that these employees work a 20 hour work week.
Screenshot of the "Job information" tab of the member profile, which show classification type under Compensation.
If you choose to allow PTO accrual on overtime when creating your policy, approved overtime hours from timecards will be included in total hours worked. These hours are then used to calculate PTO for that pay period.
Exempt workers
Salaried full-time exempt workers: The calculation of hourly accrual for these types of workers, will be based on the assumption these employees work 40 hour work week.
Salaried part-time exempt workers: The calculation of hourly accrual for these types of workers, will be based on the defined standard work hours, found in the employee’s “Job Information” profile.
Disclaimer
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.