Follow these steps to create a time off policy where employees earn their full year's allotment of time off all at once in a lump sum: 

  1. Go to Settings > Paid Time Off.
  2. Click the "Add PTO Policy" button to add a new policy.
  3. Choose “Lump Sum” when selecting the type of policy you would like to create and click “Next”. 
  4. Customize the policy by configuring each setting and saving your changes.

Here is a brief description of each setting:

  1. PTO Policy Name: This is the name by which the system will refer to each PTO policy. Examples names could be “Vacation”, “Sick”, “PTO”, etc.
  2. Calendar Label: You may not want the calendar to show which type of time off an employee is taking. This field allows you to give this policy a different name (or alias) for purposes of the calendar.
  3. 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 employees about a certain restriction or rule regarding the usage of this particular type of time off.
  4. Do requests require approval?: Built for Teams can auto-approve time off requests if you change this setting to "No".
  5. 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.
  6. Is there a waiting period?: If you require that a person is 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 employee will only be able to request time for dates after the end of the waiting period.
  7. 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 employee’s hire date. Alternatively, you can choose an arbitrary date during the year if necessary. On the chosen reset date, each employee’s PTO account will be reset according to the policy’s settings which include any carryover rules.
  8. 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 of your employees 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 follow the instructions in this article to override an employee's yearly accrual amount.
  9. Add a years-of-service tier (optional): If your company increases the amount of PTO given as employees reach certain anniversaries, you can define one or more years-of-service tiers. This article explains how you’d configure your years-of-service tiers. 
  10. 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.
  11. 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 employees 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, carry over hours are added into the same account during the reset process. You can, however, choose to add carry over hours into another account if needed. For example, any leftover vacation hours are added to a medical savings account.
  12. Do accounts have a max balance? If you've chosen to allow carry over hours from one year to the next, you may want to set a maximum account balance to prevent employees from stockpiling too many unused PTO hours year after year. Again, the percentage option, in this case, is relative to the annual amount earned. 
  13. Save: Make sure you click the save button when you’re done configuring each PTO policy.

Now that you have this policy configured, some next steps might include the following:

  1. Applying PTO Policies to Employees
  2. Setting Starting Account Balances
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