Paid Time Off (PTO)
Employees feel valued when they are allowed to take some time off from work when they need time for doctor’s appointment, to tend to their sick parents, to go on that trip to Hawaii that they always wanted to go, or just be at home in their pajamas when they feel like it.
When employees have the flexibility to take some time off from work without losing out on pay, it’s more likely that they improve their productivity and feel more satisfied with the job.
In Zoho Payroll, you can set up a paid time off policy that includes sick and vacation leaves at both the organization and employee levels. First you set up a default policy at the organization level and this will be applied to all employees. If this policy changes for a few employees, you can change this by going to the specific employee profiles.
To set up a Sick Leave Policy:
- Click the Edit button under Sick Leave Policy.
- On the page that follows, select Earning Method. Time off hours can be earned all at once “at the beginning of a year” or it can be accrued throughout the year at every pay check.
- Set the number of hours that should be added per pay period (or at the beginning of the year).
- You can set a maximum limit to the earned hours if you’d like so.
- Choose if you’d like the unused hours to be carried over to the next year.
- Choose if you’d like to apply changes to future employess/all existing employess
To set up a Vacation Leave Policy,
- Click the Edit button under Vacation Leave Policy.
- On the page that follows, select Earning Method. Time off hours can be earned all at once at the beginning of a year or it can be accrued throughout the year at every pay check.
- Set the number of hours that should be added per pay period (or at the beginning of the year).
- You can set a maximum limit to the earned hours if you’d like so.
Note:
- Unused vacation hours are carried over to the next year as mandated by the law.
- Unused vacation hours must be paid to an employee at the time of termination of employment.
To edit a time off policy:
- Click the Edit button near the vacation or sick leave policy you’d like to change.
- Update the fields in the page that follows.
- Select if the changes should be applied to only future employees or to all current employees.
- Hit Save to update the time off policy.