Annual accruals that are prorated using months

To support organizations that have 10 month, and 11 month calendars, for example, school boards, Sparkrock 365 provides the capability for annual accruals to be prorated using months.

To use this feature, you must perform the necessary setup. For more information, see Set up annual accruals to be prorated using months.

Accrual Type and Prorated Using Months

When calculating annual accrual amounts that are prorated using months, Sparkrock 365 uses different logic depending on the value of Accrual Type that is set on the cause of absence.

Accrual Type is equal to Years of Service

To determine the annual accrual amount, Sparkrock 365 uses the following logic when a cause of absence has Accrual Type set to Years of Service:

  1. To determine the accrual units per month, Sparkrock 365 performs the following steps:

    1. Finds the vacation credit date.
    2. Determines the Years of Service (YOS) based on the vacation credit date.
    3. Finds the accrual units.
    4. Determines the number of months based on the absence calendar and the YOS.
    5. Divides the accrual amount by the number of months.

  2. To determine the number of months, Sparkrock 365 performs the following steps:

    1. Finds the attendance plan start year and start month, for example, September 1st.
    2. Determines the number of working months based on the absence calendar and the attendance plan start year and start month.
    3. Determines the Accrual Year End (AYE) based on the number of working months, for example, June 30th.
    4. Finds the Vacation Credit Date (VCD).
    5. Counts the number of months between the VCD and AYE.

  3. Multiplies the accrual units per month by the number of months.

Accrual Type is equal to Fixed Amount

To determine the annual accrual amount, Sparkrock 365 uses the following logic when a cause of absence has Accrual Type set to Fixed Amount:

  1. To determine the accrual units per month, Sparkrock 365 performs the following steps:

    1. Finds the accrual units.
    2. Determines the number of months based on the absence calendar.
    3. Divides the accrual units by the number of months.

  2. To determine the number of months, Sparkrock 365 performs the following steps:

    1. Finds the attendance plan start year and start month, for example, September 1st.
    2. Determines the number of working months based on the absence calendar and the attendance plan start year and start month.
    3. Determines the Accrual Year End (AYE) based on the number of working months, for example, June 30th.
    4. Finds the Vacation Credit Date (VCD).
    5. Counts the number of months between the VCD and AYE.

  3. Multiplies the accrual units per month by the number of months.

Example

Consider the following scenario:

  • An attendance plan has a start date of September 1, 2023 and an end date of June 30, 2024. This is a 10 month calendar.

  • The cause of absence that is to prorated has 50 accrual units.

  • A new employee is hired on March 15, 2024.

  • On the Attendance Plan page, the Start Day is equal to 1, the Start Month is equal to Sep, and on the Attendance Plan Lines FastTab, the cause of absence code record has the Prorate Using Months checkbox selected.

First year

For this scenario, in the first year, the value on the Annual Accrual Worksheet page for Calculated New Year Accrual is 20.00. The value is 20.00 regardless of whether the Accrual Type is Fixed Amount or Years of Service.

The calculation of Calculated New Year Accrual is determined as follows:

  1. 50 Accrual Units / 10 Months = 5 Accrual Units Per Month

  2. March to June = 4 Months

  3. 5 Accrual Units Per Month x 4 Months = 20

Second year

In the second year, the value on the Annual Accrual Worksheet page for Calculated New Year Accrual is different depending on whether the Accrual Type is Fixed Amount or Years of Service. When the Accrual Type is Fixed Amount, the value of Calculated New Year Accrual is 50. Alternatively, when the Accrual Type is Years of Service, the value of Calculated New Year Accrual is 70.

To determine the value of Calculated New Year Accrual when the Accrual Type is Fixed Amount, Sparkrock 365 uses the following calculation:

  1. 50 Accrual Units / 10 Months = 5 Accrual Units Per Month

  2. Sept to June = 10 Months

  3. 5 Accrual Units Per Month x 10 Months = 50

To determine the value of Calculated New Year Accrual when the Accrual Type is Years of Service, Sparkrock 365 uses the following calculation:

  1. 50 Accrual Units / 10 Months = 5 Accrual Units Per Month

  2. (March to June = 4 Months) + (Sept to June = 10 Months) = 14 Months

  3. 5 Accrual Units Per Month x 14 Months = 70

See also

Process accruals
Attendance and leave management

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