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Using Time-Off Hours in a Payroll

Background

If you keep track of your employees’ available and taken time-off hours such as vacation or sick leave, there are a few things to be aware of, depending on how and when you enter an employee’s hours as they take them.

How to Include Time off Hours In Payroll

If you do not have the time and attendance software, to track each date your employee uses their time off hours, you will need to make adjustments directly on the employee’s “Manage Time Off” page before running payroll. Otherwise time off hours will be recorded as a lump sum in payroll on the last date of the pay period. See Editing an Employee’s Time-Off Balance for more details.

  1. Go to Payroll Step 1 Payroll > Run a New Payroll.
  2. In the pay schedule drop down, select the pay schedule or “off-cycle” pay to run a one-off payroll.
  3. Choose the Time Off Hour type (Sick, PTO, Vacation)
    • If you have the Time and Attendance Software, use the employee time card to record hours. The hours will automatically import when you send time cards to payroll.
    • If you don’t see the time off hour types on your payroll screen, toggle the Show/Hide Hours and Money to display all.
  4. Record the hours used.
  5. Proceed with Payroll as usual.
    • If you enter time-off hours in payroll without first entering the dates taken in “Manage Time Off,” hours entered in payroll will be recorded as last date of the pay period as taken in a lump sum in your employees “Manage Time Off” page as a payroll adjustment.
    • A payroll adjustment will also be recorded if there is a difference in the number of hours paid in payroll, compared to what has already been entered in “Manage Time Off.”

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