If you allow your employee PTO accounts to have a negative balance, you might be wondering what happens to that negative balance at year end. There are two possible outcomes:

First, if your time off is earned via regularly scheduled accruals, you can choose to require that a negative balance must be earned back by year's end. With this setting in place, you're essentially letting employees use their annual amount prior to earning it, but preventing them from using more than their annual allotment.

The other option for negative balances is to allow a person to actually use more time off than they have earned or will earn in the current year. In this case, the person will finish the year with a negative balance.

Negative balances at year end always carry over to the next year. If you want to "forgive" a negative balance, an administrator would need to manually do a balance adjustment after the negative amount has carried over. This manual entry would then offset the negative amount.

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