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Paid Time Off (PTO)

Overview

Paid Time Off (PTO) is a combined leave policy that pools vacation, sick time, and personal days into a single bank of hours. Many employers prefer PTO because it simplifies administration and gives employees flexibility in how they use their time off. ProPay supports PTO tracking as an alternative to separate vacation and sick accruals.

Set up PTO (Paid Time Off) accruals for clients who use a combined PTO system instead of separate vacation and sick time tracking.

What PTO Is

PTO combines vacation and sick time into a single paid time off bank. Employees can use PTO hours for any reason without distinguishing between vacation and sick leave.

When you enable PTO in ProPay, the system disables separate vacation and sick accruals and activates the combined PTO accrual tracking.

Setting Up Company PTO Defaults

Configure PTO defaults before setting up individual employees:

  1. Go to Employer > Employer Setup > Screen 3.
  2. Click Page 3.
  3. Transfer any existing sick hour balances to Prior Year Vacation Hours before enabling PTO.
  4. Check PTO used instead of Vac Sick.
  5. Select the Accrual Method from the dropdown:
    • Never: No PTO accruals
    • Hours Earned per hour worked: Based on actual hours worked
    • Annual Hours available: Lump sum granted at year start
    • Per Pay check: Fixed hours per paycheck
    1. Enter the Annual Default Accrual Amount for your PTO plan.
    2. Click Save.

    Checking the PTO box disables vacation and sick accrual fields and activates PTO accrual tracking.

    Setting Up Employee PTO

    After configuring company defaults, set up PTO for each employee:

    1. Go to Employees > Add or Change.
    2. Select the employee.
    3. Click Vac/Sick/PTO.
    4. Select the Accrual Method for this employee.
    5. Enter employee-specific accrual amounts (if different from defaults).
    6. Check Print PTO accrual on pay stub.
    7. Click Save.

    The PTO accrual displays on the employee's pay stub in place of the separate sick and vacation accruals.

    Migrating From Vacation/sick to PTO

    When switching from separate vacation and sick tracking to PTO:

    1. Add the employee's sick hour balance to Prior Year Vacation Hours.
    2. This ensures the employee doesn't lose accrued sick time.
    3. Enable PTO as described above.
    4. The combined balance appears as PTO going forward.

    Recalculating PTO Accruals

    To recalculate all PTO accrued hours:

    1. Go to Employer > Employer Setup > Screen 3.
    2. Click Page 3.
    3. Click Recalculate Vacation and Sick Accrued Hours.

    This recalculates PTO from the beginning of the year through the last payroll for all employees. Use this feature when changing accrual rates or correcting setup errors.

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