This article explains how to configure Built for Teams to handle a new employee's first scheduled accrual. Note that this article only applies to policies of the Scheduled Accrual type. Read this article to learn about PTO policy types.
Let's use an example to explain this particular setting and why it matters:
In our example, Acme Co. has configured Built for Teams so that it runs an automatic monthly accrual on the first day of each month. Acme Co. just hired Jane Doe today, so her hire date is January 21st. Her first scheduled accrual will happen on February 1st.
Depending on your organization's accounting rules, you might view each accrual as being earned by completing the previous full work period. If this is the case, then Jane should only receive a pro-rated first accrual because she didn't work the full month of January.
Or, you might view the accrual as time off granted in advance of work. If this is the case, then Jane should receive a full first accrual amount.
To configure this setting for your organization, follow these steps:
As an administrator, go to Settings > Paid Time Off and click the Edit Settings.
Choose Yes or No for the Pro-rate first scheduled accruals based on hire date setting.
Save your changes.
What if you aren't sure which one is correct for you? Reach out to us and we'll advise you!