Accounting Accrual of PTO

Our payroll system automatically accrues PTO for each employee according to the schedule in the company set up. We also track PTO accrual in a spreadsheet as a check against the payroll system total.

• Exempt employees accrue the same amount of PTO every week regardless of the actual number of hours worked.
• If salespeople and buyers work more than 40 hours a week, they still only accrue 40 hours worth of PTO, not more, whether they are considered exempt or non-exempt that week.
• Non-exempt employees accrue PTO based on the actual number of hours worked. Overtime hours worked do not accrue PTO.
• PTO does accrue for paid holidays, while taking PTO, paid bereavement, paid jury duty, and while taking any other kind of paid time off. Unpaid leaves of absence or other unpaid time off does not accrue PTO with the exception of the unpaid time off allowed after Christmas. We do not want to offer unpaid time off after Christmas and then penalize people for taking it by not allowing PTO accrual during that time.
• Flexible schedule employees do not accrue PTO.
• We enter the actual number of hours worked for everyone including salaried exempt and commissioned exempt into payroll but must make sure that it is set up such that no one is accruing more than 40 hours worth of PTO every time.