# How time off accruals are prorated

For each accrual you set up in a time off accrual policy, you can choose whether that accrual should be prorated. Prorating reflects an earned time off approach to accruals; an employee accrues time for the fraction of time they work between scheduled accruals at the beginning and end of the policy. If you're using new time off, you can only prorate accruals at the beginning of a policy.

If the accrual is not set to prorate, the full specified accrual amount will be always be added on each scheduled accrual day, regardless of how long the policy has been in effect, and no time will accrue on the last day of the policy (unless it falls on a scheduled accrual day).

## How accruals are prorated at the beginning of a policy

If an accrual is prorated, on the policy's first scheduled accrual date, an employee accrues an amount proportional to the fraction of time they worked in the preceding "accrual period" (the length of time between scheduled accruals).

 Prorated accrual amount = number of days from the policy's effective date to the first scheduled accrual date x the full scheduled accrual amount number of days between scheduled accruals

### Example

In an employee’s Sick Time policy, a prorated accrual of 5 days occurs annually on January 1st. The employee’s start date is July 1st. Their first accrual will be calculated as follows:

 Prorated accrual amount = 185 days (July 1 to January 1) x 5 days 365 days

The employee would only accrue 2.53 days for their first scheduled accrual, January 1st. If prorating was disabled, they’d accrue the full amount of 5 days on January 1st.

## How accruals are prorated at the end of a policy

This option is only available to TimeAttend and TimeOff customers.

If an accrual is prorated, on the last day of their policy, employees accrue an amount proportional to the fraction of time they actually worked from their last scheduled accrual to the last day of the policy.

The time off earned is accrued on the policy's last day, even if it is not a scheduled accrual date. A policy ends when either:

• A new policy becomes effective, or
• The employee's employment end date is reached
 Prorated accrual amount = number of days from the policy's last scheduled accrual date to its last day x the full scheduled accrual amount number of days between scheduled accruals

### Example

In an employee’s Vacation policy, a prorated accrual of 1 day occurs monthly on the first of the month. The employee leaves the company, and their last day is April 15th. Their last accrual will be calculated as follows:

 Prorated accrual amount = 15 days (April 1 to 15) x 1 day 30 days

The employee would accrue 0.5 days on April 15th, the last day of the first policy. If prorating was disabled, they would accrue 0 days on April 15th, because it is not a scheduled accrual day.

## Enabling or disabling prorating

To enable or disable proration if you're using new time off:

To enable or disable proration if you're using TimeAttend or TimeOff, in a default policy for a time off type:

1. Go to Administration > Time Off > Time Off Types.
2. Select the time off type whose accruals you wish to prorate.
3. In the Default Policies for New Users section, expand the Accrue drop-down.
4. Enable or disable the Prorate the beginning and end of the policy check box, as desired.
5. Select Save.

To enable or disable proration if you're using TimeAttend or TimeOff, in a policy assigned to a user:

1. Go to Administration > Employees and Organization > Users.
2. Click the name of the user you want to edit.
3. Select Time Off in the side menu.
4. Expand the Accrue drop-down.
5. Enable or disable the Prorate the beginning and end of the policy check box, as desired.
6. Select Done.
7. Click Save User Time Off Settings.