What's covered in this guide?
Time off types define the categories of leave that employees can record on their pay stubs. Each type has its own balance, accrual rules, payroll account mapping, and reporting settings.
Navigate to Payroll > Payroll Settings > Time Off Types to manage them.
Create a new Time Off Type
Click New Time Off Type to open the creation form. The form is divided into five sections.
1. Basic Details
Name: Required and must be unique for each Time Off Type.
Expense Account: The expense account this time off type posts to. If left blank, the organization's default account is used.
Accrues time off when taken: Check this box if an employee should accrue additional hours of leave when he or she takes time off under this type.
Accrual method: Adjust settings for how the time off should accrue, including:
Based on a fixed amount or hours worked
At the beginning of the year, on work anniversaries, or throughout the year
Multiplier for time off pay: Should the employee receive a multiplier for this time off from their base rate?
Type of hours: Select ordinary if the hours should count toward overtime, or non-ordinary if hours should not count toward overtime
2. Payroll Settings
Waiting Periods for accruing and requesting time off
Time Off Balance: Set up max hours to accrue in the year or in their overall balance
Carryover: Settings for how many hours can be carried over each year
NOTE: Hours reset for the year once the pay period end date falls in the new year (not the payment date)
3. Advanced Settings
Automatically approve this type of time off request: Time off requests of this type are approved without manager action.
Hide time off balance from employee: Employees cannot see their balance for this type in self-service.
Prevent time off requests for this type: Employees cannot submit requests for this type.
Prevent leave balances from falling below zero: Blocks requests that would take the balance below zero. When enabled, two additional options appear:
Ignore predicted accruals: When checked, the negative balance check only considers the current balance, not predicted future accruals by the time the leave is taken.
Negative leave balance threshold: If you enter an amount above zero, employees can request this many hours below zero, but not more
4. Application Rules
At least one rule must be added for the time off type to apply to employees. Rules define:
Time off applies to: All staff, or specific staff by tag.
Fallback Time Off: If a request would exceed the balance, it automatically draws from another time off type instead of being blocked.
Applies on: Everyday, public holidays, weekdays, weekends, or specific days.
Auto-apply on holidays: Automatically creates time off requests for eligible employees on holidays they don't work. Can be set to apply to all holidays, selected holidays only, or none.
Note that you need to have holidays configured in All Settings -> General -> Holidays
5. Milestones
Configure milestones for your employees to earn time off based on tenure.