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What are the pay batch paid time off settings?

Paid time off settings7:24

"What are the pay batch paid time off settings?"

The pay batch's paid time off settings manage how PTO's applied to all the pay batch's employees. Including if PTO's limited or unlimited, the pay batch's "PTO default days per year", and: "PTO max. days that're carried over at year-end"

To set if PTO's limited or unlimited:

  1. First, select the pay batch on: "Menu", then "Pay batches"
  2. Then tap: "Time off", then "Time off settings"
  3. If you set it to "Unlimited PTO" you'll see many of the other settings disappear, including settings like the "PTO default days per year" and the: "PTO max. days that're carried over at year-end"
  4. "Unlimited PTO":
    Isn't very common, but it's very straightforward to understand.
  5. With "Unlimited PTO", employees still need to request time off, and have it approved by their manager.
  6. However, as long as the manager approves a requested PTO, 1st Money won't enforce any other time limits on how much PTO an employee can take.
  7. That gives you the advantage of fully tracked PTO requests and approvals, whilst still allowing each manager 100% flexibility to every employee's individual needs.
  8. "Limited PTO":
    On the other hand, is much more common.
  9. But has more settings to understand.
  10. And finally, if you've decided on "Limited PTO", you'll next need to set how many days the limit is, in: "PTO default days per year"

To set a pay batch's "PTO default days per year":

  1. First, select the pay batch on: "Menu", then "Pay batches"
  2. Then tap: "Time off", then "Time off settings"
  3. Keep in mind that the pay batch's "PTO default days per year" only shows if you've selected the "Limited PTO" option.
  4. With "Limited PTO", you first have to select the default number of days PTO, per year, that you're going to limit the pay batch's new employees to.
  5. You can either drag the slider, or type in the number of days directly, and then tap: Save
  6. Now when you create a new person.
  7. And put that person into the pay batch that you've recently set the "PTO default days per year" for.
  8. And then jump to the "Time off" step (at the top).
  9. You'll see that each new person that you add to the pay batch automatically gets your suggested: "PTO default days per year"
  10. To understand how the PTO's "days per year" converts to "hrs per mth", tap the blue "more" link, and you'll see a detailed explanation.
  11. And finally, if you want any new person to have their own PTO "hrs per mth", drag the slider, or type in the number directly, and then tap: Next

To set a pay batch's "PTO max. days that're carried over at year-end":

  1. First, select the pay batch on: "Menu", then "Pay batches"
  2. Then tap: "Time off", then "Time off settings"
  3. Keep in mind that the pay batch's "PTO max. days that're carried over at year-end" only shows if you've selected the "Limited PTO" option.
  4. The carry over setting allows you to decide how many "Unused PTO" days each employee can hold on to, at year-end.
  5. The carried over "Unused PTO" days are then added to the employee's following year's: "PTO allowance"
  6. For example, if you set it to "0.00", each employee needs to use up all their "PTO balance available" by year-end (or it's lost).
  7. You can either drag the slider, or type in the number of days directly.
  8. However, there may be a common maximum number of days set by the government.
  9. But you can override the common maximum by typing the number in directly.
  10. And finally, once you've set the pay batch's "PTO max. days that're carried over at year-end", tap: Save

For advanced usage:

  • In the UK, the government encourages people to take their PTO allowance each year, rather than carrying it over.
  • So it doesn't require the "max. carry over" days to be greater than zero.
  • That means, unless it's otherwise written into an agreement, you can set the "max. carry over" days to zero.
  • The government has, however, stated that: "If a worker gets 28 days' leave, the worker can carry over a maximum of 8 days."
  • So only set the "max. carry over" days above 8 if you're sure that all the pay batch's workers are getting more than the usual 28 days' leave.
  • To learn more, see HMRC's page on: Holiday entitlement

To see each person's actual "PTO balance available":

  1. First, select the pay batch on: "Menu", then "Pay batches"
  2. Then tap: "Time off", then "Time off totals"
  3. And scroll across to the "PTO balance available" column on the far right.
  4. When you hover your mouse over any row, you'll see that person's "PTO balance available", as an estimate of what's available.
  5. And when you tap it, you'll see an even more detailed breakdown of all their PTO that contributed to their year's total.
  6. Ideally, by the end of the last day in December, each person would want their "PTO balance available" days to be less than the "PTO max. days that're carried over at year-end" that you've recently set.
  7. And finally, any "PTO balance available" that's not used, is automatically discarded.

You may notice:

  • That all "PTO balance available" is always calculated over a January to December year.
  • That means that all "PTO balance available" is automatically reset, and balances are carried over, where possible, on the 1st of January each year.

Keep in mind that:

  • Not every "Employment type" qualifies for PTO.
  • PTO only applies to people whose "Employment type" is "Employee" or: "Zero-hour worker"
  • To check the "Employment type" of the pay batch's people, tap: "Settings", then "Pay batch settings"
  • And scroll down to the "People in" heading.
  • Tap a person that's listed in the pay batch.
  • And once it slides out on the right, tap: "Employment type" (at the top)
  • You'll see that the employment types are all listed as "No" for "Paid time off", except for "Employee" and: "Zero-hour worker"

To learn more:

And that's it! That's everything you need to know about a pay batch's paid time off settings!

Updated: Fri, Jun 21, 2024.

© 2020–2024 1st Money UK Holdings Ltd. All rights reserved.
www.1st.money/help/Time_Off/What_are_the_pay_batch_paid_time_off_settings