Time off and leave
What is pto accrual?
Also called: accrued time off, vacation accrual
PTO accrual is earning paid time off gradually, usually a set number of hours per hour worked or per pay period, instead of receiving a lump balance up front.
Per-hour accrual scales with actual work, which suits hourly and part-time teams. Per-period accrual is simpler to explain. Front-loading gives everyone the year's balance on day one and is easiest of all until someone leaves in March.
Caps and carryover are the policy decisions that matter. Several states restrict use-it-or-lose-it, and in some states accrued vacation is treated as earned wages that must be paid out at separation, so write the policy with your state in mind.
Handle this automatically
Kloqk is a free employee time clock for small business. It records the punches, applies your rules, and does this arithmetic for you.
Related terms
General information for US employers, not legal advice. Wage and hour rules change and vary by state, so confirm specifics with your state labor agency or counsel.