Accruals

Accruals

Accruals refer to the accumulation of benefits such as vacation, sick leave, or personal time off that employees earn over time, often based on hours worked or length of service.

This time is “accrued” at a set rate, such as two days of paid time off per month or a specific amount of sick leave per pay period.

Accruals help employers manage leave in an organized way, ensuring that employees have access to earned time off and that there’s accountability for taking leave within company policies.

Accrual systems can also allow for different rates based on tenure or job roles and may include provisions for carrying over unused time or capping total accruals.

Proper tracking of accruals is essential for compliance with labor laws and providing employees with clear records of their available leave balances.

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