PTO tracking

PTO (or Paid Time Off) hours are often (but not always) provided as a benefit to employees. Just as paid holidays.

A perfect way for an employee to plan for a vacation, family gathering, special event, or just have a break. Sick days too.

But time off comes in limited supply.

For example, your company may offer a week (40 hours), two weeks (80 hours), or more to each employee during the year, yet still pay their normal wage.

Also keep in mind PTO hours are like currency.

Employees want to know exactly how many hours are available now, and how many hours will be available in the near future. That way they can plan.

That's exactly why PTO hours need to be tracked.

How to track PTO hours

Using our online time clock, all time off hours are entered on timesheets, just as work hours. You can easily enter them in the timesheet editor.

On the timesheet (or timecard if you prefer) we include columns for all hour types including Regular, Overtime, Double Time, PTO, Sick, and Holiday hours.

So there is no mistaking what are work hours, and what are time off hours.

If you use accruals, we recommend resetting your accrual start date each year. It helps make sure it is accurate, and helps schedule adjustments such as awarding more time off to long-term employees.

PTO vs Vacation

Technically, PTO hours and vacation hours are the exact same thing, at least in regard to payroll. They are both categorized as paid time off.

Generally, vacation is a more specific type of PTO that can be separated from other types of time off, thus allowing you to track both vacation and sick time.

In comparison, PTO is a broader term that can include all paid time off types such as vacation, sick, personal, and sometimes holidays. It includes other types of PTO too such as bereavement, jury duty, military leave, maternity leave, and others.

Companies that use PTO instead of vacation often offer employees one bank of hours they can draw from. It could be used for vacation, a sick day, or anything they want, the reason really doesn't matter, as they are all days off.

Choosing one over the other is your choice. The advantage of PTO is employee flexibility, the advantage of vacation is having specific and separate rules for both vacation and sick time.

Accruals

Some companies choose to give PTO hours as flat amounts at a specific date in the year, for example January 1st, or an anniversary date. If you do, employees will have their bank of hours available to use right away.

Some companies choose to give PTO gradually through the year instead, known as accrual. An employee's bank of hours can accumulate monthly (typically) at a specific rate. For example, if an employee receives two weeks vacation per year, the accrual rate is 80 ÷ 12, or 6.67 hours per month. So if an employee is starting off, they will have to work two months before 8 hours of time off is available.

Our system allows up to two accrual settings per employee. One for PTO/vacation, and one for sick time. They both give the option of accruing over time, or by how many hours an employee works.

Carry over

Some companies have a policy of use-it or lose-it. Meaning if you don't use your bank of hours during the year, you forfeit those hours for the new year. Thus putting more incentive on employees to make sure they use those hours.

Some companies however, carry over unused PTO hours to the following year. With us, we include an accrual setting that allows you to enter a starting amount of hours at the beginning of the yearly term. Meaning any hours entered will automatically be available to the employee at the start of the new term.

Conclusion

PTO hours are a welcome benefit you can offer your employees.

We hope you do.

If so, we can track them for you.