How To: Calculate Vacation Accrual

Who does this?  Stanford Payroll Administrators

When?  An employee is terminating mid-month and the vacation accrual for the month must be calculated to include on the termination check.

How?  By multiplying the appropriate accrual rate by the hours worked in the month

 

 

Calculate Vacation Accrual (4 steps)

step 1

Gather employee information to determine the accrual rate:

  1. Employee years of service
  2. Employee FTE (i.e. Full-time 100%, Part-time 50% or 75%)
  3. Employee Pay Group from PeopleSoft
step 2

Review Administrative Guide Policy 2.1.6 to determine the correct vacation accrual rate:

  1. Click Administrative Guide Policy 2.1.6.
  2. Find the appropriate accrual rate for the employee's pay group (Exempt Staff or Non-Exempt Staff) and years of service.
    Note:  The accrual rates for Bargaining Unit employees match those of Non-Exempt Staff.
step 3

For Exempt Staff:

  1. Calculate the percentage of days worked in the month. For example, if the employee worked 10 days during a month with 22 work days, the percentage of days worked is 10/22 or 45.45%.
  2. Multiply the applicable accrual rate by the percentage of days worked. For example, if the employee above accrues 10 hours of vacation per month, then the accrual due is 45.45% * 10 hours or 4.55 hours.
  3. If the employee works part-time, multiple the accrual calculated by the percentage FTE for the employee. For example, if the employee above works 75% time, the accrual due is 4.55 hours * 75% or 3.41 hours.
step 4

For Non-Exempt Staff or Bargaining Unit:

  1. Multiply the applicable accrual rate by the number of straight time hours worked during the month. For example, if the employee worked 80 straight time hours and 4 overtime hours during the month and the employee accrues vacation at a rate .038470 hours per straight time hour worked, then the accrual due is 80 * .038470 or 3.08 hours of vacation.
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What Happens Next?

Questions?

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