Serenic payroll offers a feature called ‘Activations’ that can be used to make a payroll control become active at a prescribed time. You specify the time interval and what date the trigger is based on including: Employment Date, Termination Date, Birth Date, or an Attribute Date. These can be used for example to set a date at which an employee can participate in the 401K program or are eligible for benefits. The Serenic HCM demo database does not comes with setups or examples on the use of Activation codes so this blog is going to demonstrate a scenario.
I’ll be providing an example where we accrue vacation or sick time and grant it based on the number of hours worked and how long the employee has been with the company.
We’ll have several tiers of years of service that will trigger different levels of vacation time to accrue per Hour Worked.
First we use the ACCRUE PTO Payroll Control card which should be present in your database.
Note: You will need to create the Base Amount, Brackets, and Activation Codes (displayed in the screen shots before you can complete this step so please review the entries blog before beginning setup.)
We navigate to the Calc Method button and enter a new line for 5/1/15.
We setup the Calc Method lines as displayed below.
Here is the Base Amount Detail setup to accrue based on the Amount of HOUR REG in the pay period. You may include HOUR OVER as well if you like or any other HOUR payroll controls to tally. By adding filters to the Name filter and Control Code filters.
Here is the Bracket setup.
Here is the Bracket Detail.
The Quantity is based on the amount of vacation the employee accrues per hour worked. This allows the employer to base the amount of vacation earned on the actual number of hours worked and not just the span of time the employee worked. So, your employee will have to work the full hours to earn the full vacation. In this case, there are 5 tiers of activations, each using a slightly higher quantity to go with earning more vacation per hour the longer you are with the company.
The tier ‘Quantity’ below is based on the following logic:
VAC A: will accrue 48 PTO hours until the second anniversary of employment since the employment date
VAC B: will accrue 64 PTO hours from the second year of employment until the sixth anniversary since the employment date
VAC C: will accrue 80 PTO hours from the sixth anniversary until the eleventh anniversary since the employment date
VAC D: will accrue 96 PTO hours from the eleventh until the sixteenth anniversary since the employment date
VAC E: will accrue 120 PTO hours after sixteen years since the employment date
How to do the math to get your Quantities (amount to accrue per hour worked):
Decide how many days vacation you want to grant per year.
Divide that number by 8 for work hours in a day.
This will give you the hours accrue for your employee each year if they worked a regular full schedule. For this example, we’ll say the starting is 80 hours ( 2 weeks).
Next, decide which divisor you want to use. The divisor is the number of hours a full time employee supposedly works in one year. 2080 is the most commonly used number.
To get our accrual multiplier, we’ll divide 80 (hours in 2 weeks, since we are assuming we pay bi-weekly) by 2080 (hours worked in the year) to obtain .0385. So for every hour our employee works he should earn .0385 hours of vacation.
Repeat each of the steps above to determine the ‘Quantity’ to use in each Activation Code.
Here are the Activations.
Don’t forget to add the payroll control to the Employee Pay Controls and mark it ‘Active’.
Finally, add it to the Calculation Order.
When payroll is calculated using this setup, based on how long the employee has been with the company since their Employment Date, they will fall in to a different Activation tier that accrues vacation time more quickly per pay period.
All taken care of with a push of a couple of buttons!
If only, vacation planning and saving for them was so simple!