General Inquiries

PTO accrual by pay period or lump sum at beginning of year

  • 1.  PTO accrual by pay period or lump sum at beginning of year

    Posted 12-20-2018 12:23
    Hi Everyone,
    We are wondering how companies allocate PTO to their employees -- do you give a lump sum at the beginning of the year or do employees accrue it over each pay period (or other time period)?
    Thanks!

    ------------------------------
    Robin Wilton
    Controller
    Willis Mechanical
    Norcross, GA
    ------------------------------


  • 2.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 12-20-2018 13:55
    Our employees accrue PTO weekly the first two years, after that they receive it each year on their anniversary.

    ------------------------------
    David Helms CCIFP, CPA
    Controller
    Cullum Mechanical Construction, inc.
    North Charleston SC
    (843) 576-2650
    ------------------------------



  • 3.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 30 days ago
    We accrue PTO on a weekly basis/pay period.  We do allow employees to go '6 months in the hole' on their PTO due to this policy (use future PTO).

    ------------------------------
    Scott Bishop CPA
    C F O
    Buist Electric, Inc.
    Byron Center MI
    (616) 878-3315
    ------------------------------



  • 4.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 30 days ago
    We do a lump sum on Jan. 1 each year. When making this decision, you could also consider whether or not you pay out PTO to someone who is leaving. We do not pay out PTO. If you did, I would lean more toward accruing each pay period.

    ------------------------------
    Emily Ellis
    Controller
    C. T. Wilson Construction Company, Inc.
    ------------------------------



  • 5.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 30 days ago
    After one year of service our employees are eligible for 40 hours PTO.
    Years 2–5 -40 hours
    Years 6-10 - 80 hours
    Years 11-15 - 120 hours
    Years 16 and over - 160
    Employees are only allowed to carry over 40 hours into the next year, so they must use it or lose it. We do not accrue time.

    ------------------------------
    Jillane Brown
    President
    Browe Construction Company
    Selma NC
    (919) 373-5754
    ------------------------------



  • 6.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 30 days ago
    We do mostly Program Management work overseeing construction projects (as opposed to at-risk construction), and we accrue PTO each pay period with no waiting period for employees to begin accruing time. We allow employees to "go negative" only rarely, with Manager and CFO approval, and limit it to no more that 40 hours negative. We provide 15 days PTO (sick and vacation) for the first 5 years, then 20 days per year until 10 years of services, then 25 days per year thereafter. We do pay out unused PTO to terminating employees.

    Oh, and one last thing - we expense our PTO when it is accrued, not when it is used. This provides us with a bit more consistency for that benefit expense recognition.

    ------------------------------
    Mark Hejtmanek
    Chief Financial Officer
    The CPI Group
    Greenwood Village CO
    (303) 504-9999
    ------------------------------



  • 7.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 30 days ago
    We refresh the balance on the employee's employment anniversary, rather than at the beginning of the year.

    ------------------------------
    David Guild MBA, CCIFP
    Controller
    Rogers Mechanical Contractors, Inc.
    Villa Rica GA
    (770) 456-6204
    ------------------------------



  • 8.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 24 days ago
    Thanks everyone for your replies.  It is good to see how other companies approach this.

    Happy 2019!

    ------------------------------
    Robin Wilton
    Controller
    Willis Mechanical
    (503) 551-4739
    ------------------------------



  • 9.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 12 days ago
    It is accrued by pay period but employees are permitted to go negative by a maximum of 40 hours​

    ------------------------------
    Susan Milner
    Corporate Controller
    Eldeco Inc.
    Greenville SC
    ------------------------------



  • 10.  RE: PTO accrual by pay period or lump sum at beginning of year

    Posted 11 days ago

    We accrue PTO and do not allow employees to go in the negative.  We also pay out any unused PTO at termination.

     

    Here is our PTO accrual:

     

    First year – 40 hours

    Second year – 80 hours

    Third year – 120 hours

    Fourth year – 133 hours

    Fifth year – 146 hours

    Sixth year – 159 hours

    Seventh year – 172 hours

    Eight + - 188 hours

     

    We allow employees to carryover up to 188 hours

     

     

    Thank you.

     

    Vickie L Hartley

    CFO

     

    Com Grnd Const Logo Black as of 2-1-2018 - size 2x3

    218-740-3666 ext 2