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Mar10

PTO for no salary employee

How do I calculate a PTO for hourly employees. If its a % how do I calculate it.

It depends on how your policy describes how PTO are earned, given or accrued.  In some companies, PTO time is calculated like any other time off such as vacation or sick time. In other companies PTO time is typically calculated as hours earned as a percentage in relation to hours actually worked.

For example if your employee is “given” two weeks PTO time no calculation is required.

Earning PTO time based on hours worked is a calculation. Example – an employee based on their years of service should earn 80 hours PTO time in one year or working 2080 hours.

80 hours divided by 2080 (hours worked) = .0385

.0385 is the accrual rate for each hour an employee works.

If the employee works 40 hours per week, they accumulate 1.54 hours of PTO time. (.0385 times 40 equals 1.54). Basically, if your employee works the entire year, the calculation is 1.54 times 52 weeks or 80.08 hours.

This entry was posted on Sunday, March 10th, 2013 at 3:54 pm and is filed under
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