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Creating a Lump Sum Policy
Creating a Lump Sum Policy

Create a policy where people earn their annual PTO amount all at once (lump sum).

Rin avatar
Written by Rin
Updated over a week ago

For customers of our PTO module.


To create a lump sum policy: 

Note: Only Company Admins and HR Admins can manage and configure PTO policies. To learn more, please refer to: Understanding User Roles & Permissions.

  1. Click your company name at the top of the main navigation, then click Company Settings.

  2. Click the Paid Time Off tab.

  3. Click the +Add PTO Policy button.

  4. Select the Lump Sum policy type, then click the Next button.

  5. Configure each setting before clicking the Save button.

Here is a brief description of each setting:

PTO Policy Name

This is the name by which the system will refer to each PTO policy. Example names could include “Vacation”, “Sick”, “PTO”, etc.

Calendar Label

You may not want the calendar to show which type of time off a person is taking. This field allows you to give this policy a different name (or alias) for purposes of the calendar.

Employee Instructions

This field allows you to add a brief note or instruction that will be displayed to each person who has this policy. This is helpful if you need to remind people about a certain restriction or rule regarding the usage of this particular type of time off.

Do requests require approval?

Built can auto-approve time off requests if you change this setting to No.

Who receives time off requests?

Choose whether a person’s manager (the person they report to) or an HR Admin will approve their PTO requests. Note that even if you choose the person's manager, all Company Admins, HR Admins, and HR Managers have access to approve or deny all PTO requests should the manager be unable to. If requests do not require approval, a notification email will still be sent. 

What time interval are time off requests submitted in?

From this dropdown menu, you can select the minimum time interval that requests can be submitted in for this specific policy. You can choose from 1-minute, 15-minute, 30-minute, or half-day intervals.

Is there a waiting period?

If you require that a person be employed for a minimum number of days before taking time off, enter that value here. A common example is a 90-day waiting period. Accruals can still occur during this waiting period if you'd like, but the person will only be able to request time for dates after the end of the waiting period.

When do account balances reset?

Most companies handle paid time off on a yearly basis, so at some point, all accounts are reset. This is typically on January 1 or on the individual’s hire date. Alternatively, you can choose an arbitrary date during the year if necessary. On the chosen reset date, each person’s PTO account will be reset according to the policy’s settings which include any carryover rules.

How much time off is earned per year?

Enter the annual amount of time off (in hours) that most people will receive. For example, if most individuals receive 2 weeks of paid time off each year, you would enter 80 in this box. If you need to define any exceptions to this rule, you can override an employee's yearly accrual amount by configuring a person's PTO account.

Add a years-of-service tier (optional)

If your company increases the amount of PTO given as employees reach certain anniversaries, you can automatically adjust PTO amounts for years of service.

Do you allow negative account balances?

If you allow employees to have a negative balance, you can enter that amount here as a fixed number of hours or as a percentage relative to the annual amount earned. Or, you may choose to not set a specific restriction and instead choose the unlimited option. If an employee tries to submit a PTO request that goes more negative than you allow, the system will prevent them from submitting that request.

Does unused time carry over to the next year?

Unless you change this setting, all unused time off will be lost as of the reset date. If you allow people to carry a portion of their remaining PTO balance from year to year, you can enter that here as a fixed number of hours or as a percentage. By default, carryover hours are added to the same account during the reset process. You can, however, choose to add carryover hours into another account if needed. For example, any leftover vacation hours are added to a medical savings account.

Do accounts have a max balance?

If you've chosen to allow carryover hours from one year to the next, you may want to set a maximum account balance to prevent people from stockpiling too many unused PTO hours year after year. Again, the percentage option, in this case, is relative to the annual amount earned. 

Please contact our customer success team for additional assistance.

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