Benefit accrual plans are basically set of rules. These rules define how benefits (in hours) are accrued over a period of time. For instance,
Paid time off and sick leaves.
Benefit accrual plan is associated with an earning code. When these earning codes are referred in the worker’s pay statement, they reduces the plan balance for the worker.
Over the period of time as the worker spend hours in the company, they accrue hours in the plan. For instance any worker can earn 1.5 sick leaves for working 160 hours in a month.
Benefit accrual plans can be created from the following screen
The field descriptions are as follows
|Benefit accrual plan||Plan name to be mentioned here|
|Description||Benefit accrual plan description|
|Annual plan start date||The first day of the current plan year. The plan is automatically reset each year on the anniversary of this date.
If this field is blank, the plan is not reset.
|Accrue on usage||To determine the number of hours that are accrued in each pay statement for a benefit, the total number of hours on the earnings statement is multiplied by the hourly accrual rate. If this check box is selected, hours that are used from this plan are included in the total number of hours.
Suppose that a plan uses the “Sick” earning code, and a worker who is typically scheduled to work 40 hours each week is sick for one day. If the Accrue on usage check box is selected, the worker will accrue additional sick time. This is based on 40 hours times the hourly accrual rate. If the Accrue on usage check box is cleared, the worker will accrue benefits based on only 32 hours.
|Carry forward balances||If this check box is selected, hours that are not used at the end of the plan year can be carried forward to the next plan year.|
Based on the settings on test data for Contoso, the following Benefit Accrual information can be seen from the benefits accrual balances screen. The below shows the sample data of Contoso Database.