Set Up Time Off Hour Types

Background

You can track non-worked hours activity as a “Time Off” bank of hours for each employee, such as vacation, sick, or personal business time.

Before you can manage time-off hours or use the time off request feature, you must first set up your payroll hour type as a “Time Off” type.

Settings > Payroll Settings > Hours & Money Types
For a new time off hour type: click +Add Hour
- –or —For an existing hour type, click the name and click “Edit” beside the hours type you want to track as Time Off.
Is this a non-worked hour? Select “Yes” if this hour type is used to track hours that are paid, but not worked, such as vacation, holiday, sick time, paid time off, etc.
- This setting is because some states have taxes based only on worked hours, and this field allows these taxes to calculate correctly.
Do you want to include in Manage Time Off? Select “Yes.”
Is this hour type frequently used in payroll? Select “Yes” if you want this hour type to automatically show on your payroll entry screen.
- If you click “No”, it won’t show by default, but you can have the hour type show when you click the toggle to “show other hours and money” on payroll step one.
Should this be included on the time card? (If you have the time and attendance software), select “Yes” if you want this to be included on the employee time card.
Click “Save.“

After you have set up one or more hours types to track time off, you can do one of two things:

You can set up accrual rules to automatically calculate and give time-off hours each payroll. See Setting Up Company Time Off Accrual Rules.
You can manually add hours to each employee’s balance so that when time-off hours are entered in their time cards, the hours will be subtracted from their available balance.
- See Editing an Employee’s Time-Off Balance and Managing Time Off.

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Payroll Help