What is PTO Carryover?
At the end of the year, many employees may still have unused PTO time. You can choose to let employees “Carryover” some or all of that time into the next year in addition to the PTO they’ll get in the new year. This is called PTO Carryover.
What are the PTO Carryover options?
Each of your PTO Plans will have 1 or more PTO Types (like PTO, Vacation, SICK, etc) within them. When setting up your PTO Plan you will choose a carryover rule for each PTO Type. For example, you may allow carryover for Vacation but not for Sick.
Your carryover options are:
- Use it or Lose it
- Allow Carryover
If you choose Allow Carryover, you will also get options to cap the carryover amount.
When does Carryover happen?
Carryover happens on the Carryover Date which for most plans is January 1st.
However, you may be allocating PTO based on an anniversary date, which would change the carryover date.
Let's break down exactly when the carryover date is. First, I need you to understand that there are only 4 ways you can allocate PTO:
- All at Once - Beginning of the Year
- All at once - On their Anniversary Date
- Accrued - By Hours Clocked
- Accrued - By Months Worked
Here's a chart that shows exactly when the Carryover date is for each:
As you can see, "All at once - On their Anniversary Date" and "Accrued - By Months Worked" are based on the employee's anniversary date so each employee will have their own carryover date.
What happens on the Carryover Date?
Pretty simple! If the employee has a PTO Type that is "Use it or Lose It" plan we will wipe out their balance and essentially reset their plan.
If they have a PTO Type that is "Allow Carryover" , we will move their balance to the Carryover field so they don't lose any available balance they have. Of course we'll apply any cap rules if you have set them.
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