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Managing Time Off in Justworks Payroll
Admins with Company HR permissions can set up time off policies in their Justworks Payroll accounts so that their employees can request days off through the platform. Admins will be able to approve or deny time off requests, as well as view and manage employees’ time off balances.
To set up a PTO (Paid Time Off) policy, follow the steps below.
Adding a Time Off Policy
Start by clicking into the Time Off tab in the left-hand side menu of your Justworks Payroll account. Then, click the +Add policy button in the upper right-hand corner of the Policy tab.
Screenshot showing the +Add new policy button.
Basic Policy Details
On the next page, you’ll be able to enter these key policy details:
- Policy name: How the policy will appear in employees’ accounts.
- Policy start date: This can be the start of the current year — you will be able to provide our team a report of employees’ current PTO balances to ensure they’re starting with the correct amounts of time off.
- Policy end date: This field blank can be left blank if you’d like the policy to be ongoing.
- Policy type: Determines whether the policy is designated for vacation days or sick leave.
Screenshot showing the Add policy page where admins will need to enter the policy details.
Policy Structure
After these sections, you’ll get to determine the policy structure. This will include selecting the policy’s annual cycle and balance structure.
Specifically, you’ll be able to choose from these options:
- Employee’s work anniversary: Policy will restart on an individual employee’s work anniversary.
- Calendar Year: Policy will restart on January 1st of each year.
- Days per year - granted upfront: Employees receive their full PTO balance on the start date of their policy to use as they see fit throughout the year.
- Accrual per hours worked: Employees accrue PTO each pay period depending on how many hours they worked.
- Flexible: Employees have no set PTO balance and can submit time off requests whenever they would like. Admins will be able to approve or deny these requests at their discretion.
Screenshot showing the Policy structure section.
We recommend discussing applicable regulatory constraints with your legal advisor prior to creating PTO policies in Justworks, as certain states impose restrictions on how employers may limit carryover of accrued time off, among other restrictions.
If you select the accrual setting, you will need to set up the details of the accrual basis. These details include:
- Accrual rate: How many hours an employee will need to work to receive 1 hour of PTO.
- Carryover: Notes whether employees with a positive PTO balance at the end of the policy year will be able to carry over any of that PTO into the next year, and if so, how much.
- Accrual cap: Sets a limit to how much PTO employees can receive each year — this would be the total yearly policy balance.
- Overtime accrual: Marks whether employees can accrue PTO on overtime hours.
- Negative balance: Allowing a negative balance lets employees submit time off requests for more hours than they currently have in their PTO balance. If their request is approved, they will have a negative PTO balance until they accrue enough to be back on the positive side.
Screenshot showing the accrual details admins will need to enter.
If you select the days per year - granted upfront setting, you will have the option to give more time off to your employees based on their length of service at your organization. You can do this by adding tenure levels.
Screenshot showing where admins can add tenure levels to a policy.
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 2025, will receive their first tenure increase on January 1, 2027. For a policy on the employee work anniversary annual PTO cycle, tenure increases will occur on the employee’s work anniversary.
Assigning Employees
Once you’ve selected all of your time off policy settings, you’ll be able to assign employees to the policy. Any assigned employees will have a PTO balance according to the policy details, and be able to submit time off requests from the policy.
Screenshot showing where admins can check off employees' names to assign them to a time off policy.
After assigning all of the employees you’d like, click the Create new policy button in the bottom right-hand corner to save the policy.
Managing Time Off Policies
You’ll be able to manage your existing PTO policies by going back to the Time Off on the left-hand side menu. Here, you’ll be able to Edit policy name, Assign employees, and/or Cancel policies by clicking the buttons on the right side of each policy.
Screenshot showing the Time off section where admins can find their existing time off policies.
Be sure to click Save to make sure any changes go into effect.
Managing Time Off Requests
When an employee assigned to a time off policy submits a time off request, their admin will have a new alert on their Justworks Payroll dashboard, prompting them to approve or deny the request.
If approved, the employee’s time off will be listed on the company calendar, and their balance will be adjusted accordingly once their time off has passed.
If an adjustment needs to be made to an employee’s PTO balance, you can reach out to our Support Team at support@payroll.justworks.com or 646-681-7473 and let our team know how much needs to be added or subtracted from the employee’s balance.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, 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.