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Putting This Plan Into Action You can make your equation whatever you want it to be. Your payroll company will take that equation and track everything for you. Employees can see their earned PTO on their paystubs and choose how much to pull and when. In setting up your plan, you can choose to let employees go “negative” in their PTO bank or not. If their PTO rolls over or if you want to require mandatory usage. My rules are to let them go negative up to 40 hours, and they can roll 50% over because I want them to take time off.
A full-time employee would work 8 hours a day, five days a week, 52 weeks a year, totaling 2,080 hours a year. This math means that for every hour they work, this employee would earn 0.088 hours of PTO (184÷2080). Employees earn PTO time for every hour they work. The amount of time they earn depends on the math above. If you want to have them earn one week of vacation or three weeks of vacation, the equation will be different. Part-time employees can be on the same equation and will earn less because they work less. For example, a part-time employee working 20 hours a week instead of 40 would earn 92 hours of PTO instead of 184. I have a tiered PTO system. New employees are at the lowest level, and employees can be moved up based on their title, responsibility, or talent. Your tiers could look like this:
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• 0-2 years of service, 0.088 PTO per worked hour
• 2-5 years of service, 0.108 PTO per worked hour
• 5-plus years of service, 0.123 PTO per worked hour
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