Issue/Symptom/Question

A method to remove all unused PTO hours from employees, when the PTO Category has a Carry Forward setting of N. It will also calculate the accrual value of these hours, if they were attached to an accrual schedule, and make the accounting entries for this as well.

Applies To

Payroll/Year End Processing/Year End PTO Writeoff
Payroll/Set up/PTO, Hours Classification Codes and Overtime Rules/Paid Time Off Categories
Payroll/Set up/PTO, Hours Classification Codes and Overtime Rules/PTO Accrual Schedule Information

Resolution/Fix/Answer

When your company's PTO policy is to 'use it or lose it' and you do not carry over unused PTO hours to the next calendar/fiscal/employee anniversary year, you can use the PTO Writeoff process to remove the unused hours, and back out any previous accrual entry made for these lost hours.

Year End PTO Writeoff

The Year End PTO Writeoff window allows you to initiate the write-off of unused PTO balances that cannot carry forward to the next PTO year. This process will create an entry to bring the PTO hours balance to zero for all PTO categories that have the Carry Forward at Year End field set to N. If the Adjust Acc Liab at Year End field is set to Y, this process creates accounting entries to reduce the PTO liability for the unused hours.

Accounting entries are posted using the “Write Off As Of” date entered in this window. PENTA uses the employee’s rate in effect as of this date to calculate the amount for the accrual adjustment.

Clicking the Write Off Prior Year PTO button initiates this process.

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