📝 Overview

Time off is a period of time when employees are not working. You can offer paid or unpaid time off, set different policies for different groups of workers, and track balances directly within payroll.

⏱️ Types of Time Off

Common examples of time off include Vacation, Sick, Holiday, and Bereavement. You can configure any combination of paid or unpaid policies to fit your business needs.

Paid Time Off

Workers on a paid time off policy receive compensation for time taken off. You'll track hours taken and enter them during the payroll run. The pay is calculated and added to the worker's pay stub as earnings, taxed the same as regular compensation, and reported as part of gross earnings on the W-2 at year end.

Unpaid Time Off

Workers on an unpaid policy receive no compensation for days off. You can still set policies to track how much time off is allowed, used, and remaining. Time off hours are recorded during the payroll run and reflected on the pay stub for recordkeeping only — no additional compensation is added to wages.

⚙️ Setting Up Time Off

Adding a Time Off Type

Click the arrow to see how to add a new time off type to your account

Navigate to the Employer Profile.
Locate the Time Off card and click Edit.
Click Add new time off.
Select the desired time off type. You can optionally add a custom name — this name will appear on worker pay stubs.
Indicate that you want to set company default values (most common).
Choose how hours are accrued:
- Based on hours worked: The worker earns time off hours based on how many hours they work.
- Fixed amount each year: The worker receives all their time off on a specific date, such as January 1 or their hire date.
- Manual: For employers tracking accruals with a separate tool or custom method. You'll manually enter accrued hours for each worker by adjusting their time off balance.
- No accrual: For unlimited time off policies. No hours are accrued.
Choose when hours are accrued:
- At the start of the calendar year: The worker earns the full allotment of hours starting January 1 each year.
- On the anniversary of the worker's hire date: The worker earns the full allotment on their work anniversary, based on the hire date in their worker profile.
- Per pay period: The worker earns hours each pay period until they reach the total hours allotted in the policy.
Enter the following settings for your chosen accrual type:
- Accrual rate / total time off hours per year: The total number of hours to be accrued per the chosen method.
- Max carry over hours (optional): The maximum number of hours a worker can carry over to the next year. Leave blank for unlimited carry over.
- Max hours allowed (optional): The maximum number of hours a worker can accrue for this time off type. Leave blank for no limit.
Click Save.

Adding a Time Off Policy

When you add a time off type for the first time, a default policy is created automatically. If you need multiple policies (for example, one for new employees earning 2 weeks per year and another for tenured employees earning 4 weeks) you can add them following these steps:

Click the arrow to view the process

Navigate to the Employer Profile.
Locate the Time Off card and click Edit.
Locate the time off type you want to add a policy to and click Edit.
Any existing policies will appear here. To add a new one, click Add a policy.
Enter a display name to help you identify the policy later. This name is only visible to company admins and will not appear on worker pay stubs.
Select the accrual method and configure any additional settings.
Click Save.

Assigning Time Off to a Worker

To assign a time off policy to a specific worker, go to that worker's profile and follow these steps:

💡 Tip: Make sure at least one time off policy has been created before assigning time off to a worker.

Click the arrow to view the process

Navigate to the Employer Profile.
Locate the Time Off card and click Edit.
Click Add new time off.
Select the time off type you set up earlier.
If more than one policy exists, select the appropriate one from the list.
Enter a starting balance if applicable.
Click Save.

📆 Running Payroll with Time Off

Once time off is set up for a worker, entering it during a payroll run is straightforward:

Click the arrow to view the process

On the Hours and Earnings screen, click the ⋮ icon at the end of the row for the worker with time off.
Click Manage time off.
Click Add a new time off.
Select the time off type.
Enter the number of hours taken.
For paid time off, add or adjust the rate used to calculate pay. The system will attempt to calculate the rate based on the worker's salary or hourly pay, but you can override it as needed.
Click Save.
The time off hours will be added to the payroll run. Continue the rest of the run as usual.

💡 Tip: By default, time off is not included in off-cycle payroll runs, since it is calculated on a per-pay-period basis. You can choose to include it when running an off-cycle payroll by selecting to include time off if applicable.

🔧 Managing Time Off Balances

Updating a Worker's Balance

To adjust an existing time off balance for a worker, go to the worker's profile and follow these steps:

Locate the Time Off card and click Edit.
Review the current time off balance.
In the Manage balance field, enter the number of hours you want to add or subtract. For example, to reduce a balance from 50 hours to 45, enter -5.
Confirm the adjusted balance is correct, then click Save.

Moving a Worker to a Different Policy

To change which time off policy a worker is assigned to, go to the worker's profile and follow these steps:

Locate the Time Off card and click Edit.
View the current policy listed under Time off policy.
Use the dropdown to select the policy you want to move the worker to.
Confirm the worker is now assigned to the correct policy, then click Save.

❓ Frequently Asked Questions (FAQs)

Find answers to common questions or additional details that may not be covered in the main instructions.

Click the arrow to view frequently asked questions.