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Accruing PTO While Using PTO?

Crystal Stewart's Profile

Can you accrue PTO hours when a person is using their PTO hours?

For example if you would normally accrue .25 hours of PTO for every 40 hours would you get the full .25 hours if you worked 20 hours and submitted 20 hours of PTO?


Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Generally, accrue when earned, avail when available. It depends on individual company policy if pro-rata accrual/availment is allowed.

Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) | can always disallow (part or full) the PTO application and deduct (if and when applicable) from wages.

Topic Expert
Scott MacDonald
Title: President/Owner
Company: AlphaMac Resources, Inc.
(President/Owner, AlphaMac Resources, Inc.) |

Typically accrual of PTO is based on a standard year of 2,080 paid hours. So the answer is yes you accrue for PTO when taking PTO.

If a person has used up all of their PTO, then they would not be in paid status and would only have, in your example, 20 hours to accrue for PTO, or half of the .25 hours.

Ross Anderson, CPA, MBA
Title: Controller
Company: TFS Capital
(Controller, TFS Capital) |

Yes. An hour of PTO used is an hour of work unless the employee does not return to work afterwards.

Bruce Tyler
Title: Chief Financial Officer
Company: Turning Point of Central California, Inc..
(Chief Financial Officer, Turning Point of Central California, Inc.) |

Crystal - That's a great question. It can go either way but it should be defined in the employee handbook. PTO can be earned or accrued per pay period or per hour worked. The employee handbook should clearly articulate which basis is to be used. If an employee earns 2 weeks (80 hours) of PTO per year, it has been my experience that most payroll providers will default to 3.33 hours earned per pay period (semi-monthly cycle) or 3.08 hours (bi-weekly cycle). The providers do have the ability to calculate PTO based on hours worked as well so the PTO earned would be .0385 per hour worked. If the handbook is vague on this it will always default to whichever method is best for the employee.

Richard Baikie
Title: Director of Finance
Company: Super King Markets
(Director of Finance, Super King Markets) |

In our case, the PTO accrual is based on hours WORKED, so it wouldn't be accrued as PTO or sick is taken. There is a cap for the year, so OT can't take it above the maximum accrual.

Crystal Stewart
Title: Accoutant
Company: Xcaliber International
(Accoutant, Xcaliber International) |

Thank you so much for all of your answers.


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