Modern Tools

# What does PTO hrs balance mean?

## What does PTO hrs balance mean?

time off balance
Your time off balance is the hours available for you to book off for a given time off type, as of a given day.

## How is accrued leave balance calculated?

To calculate annual leave, follow these steps:

1. multiply the number of weeks that the employee has been employed by the business (i.e. since they started working in the company) by 2.923.
2. deduct any annual leave that the employee has already taken; and multiply this amount by the employee’s hourly rate of pay.

How is the PTO balance calculated for an hourly employee?

= 0 hours of PTO accrued + 32 work hours unaccrued. PTO Accrued in Period is 0 since employee has not reached 40 work hours yet. However, the 32 hours should count towards the following week’s balance calculation. So, we store that in the ‘Unaccrued Work Hours’ column.

### How many hours do you have to work to accrue PTO?

There are relative variances depending on whether the employee is considered exempt or non-exempt. PTO is accrued based on the hours that an employee has worked up to 40 hours per week.

### When does PTO accrue on a pro rata basis?

If you work at least 30 but less than 40 hours per week, your PTO is accrued on a pro-rata basis. (For instance, if you work 30 hours per week and have worked for Arrowhead, ACM or OnPoint for five years or less, multiply 30 hours x 0.1155 = 3.465 hours per pay period.)

When does PTO have to be taken from paycheck?

If an employee has used PTO time not yet accrued, and employment terminates, the PTO taken is deducted from the final paycheck. Employees who give two weeks’ notice of employment termination must work the two weeks without utilizing PTO.

= 0 hours of PTO accrued + 32 work hours unaccrued. PTO Accrued in Period is 0 since employee has not reached 40 work hours yet. However, the 32 hours should count towards the following week’s balance calculation. So, we store that in the ‘Unaccrued Work Hours’ column.

## When does PTO accrual start for new employees?

As the employee was hired on 3rd July 2019, the employee will not be eligible for PTO accrual until Sep 30th. The image above shows the number of hours worked by employee, that are used for calculating PTO accrual. Though the employee may have worked during the probationary period, the work does not lead to PTO accrual.

## How much PTO do you get when you ask for time off?

Assuming an employee works 40 hours both weeks, they’ll receive 3.2 hours of PTO for that pay period. To illustrate how you can use this method if an employee asks for time off, consider the following example. An employee asks for a week off at the end of June.

Do you have to give an employee a negative PTO balance?

No, you do not have to let employees take a negative PTO balance. If you do allow it however, your policy should be clearly written up in your employee handbook. What happens if an employee is terminated or quits with a negative PTO balance?