Compensated Absences Policy Recommended Procedure

 
Note: The numbers shown in brackets below are references to the columns in the accompanying accrued vacation worksheet.

 
Hours Reporting and Calculation

Reporting entity by detail employee

Add prior year ending balance data to calculated leave earned, subtract ending leave balance to compute hours taken.
Regular Hours Beginning Balance [3] + Regular Hours Earned [4] – Regular Hours Ending Balance [7] = Regular Hours Used [6]

Estimate of current liability hours
Percent of hours used from beginning balance
By detail employee [1], when regular hours taken [6] is greater than regular hours earned [4], calculate excess of hours taken over hours earned [10].  When hours taken is less than hours earned, this amount should be zero.

Total Excess of Regular Hours Taken over Regular Hours Earned [10] / Total Regular Hours Beginning Balance [3] = Percent of Hours Beginning Balance Used Each Year [bottom of column 10]

Dollars Reporting and Calculation

Reporting entity by detail employee

Beginning Balance $ [11] = Dollar balance calculated for the prior year (prior year pay rate including fringes)

Additions $ [12] = (Regular Hours Earned [4] + Bonus Hours Earned [5]) X Current Year Employee Pay Rate [2] (including fringes)

Ending Balance $ [14] = Total Ending Balance Hours [9] X Current Year Employee Pay Rate [2] (including fringes)

Total Deductions $ [13] = Total Beginning Balance $ [11] + Total Additions $ [12] – Total Ending Balance $ [14]

Current Leave Liability $ [15] = Percent of Hours Beginning Balance Used Each Year [bottom of column 10] X Ending Balance $ [14]

 

The report developed should reflect detail by employee [1] and total dollars beginning balance [11], total dollars additions [12], total dollars deductions [13], total dollars ending balance [14], and total dollars current liability by reporting entity [15].

[Click for MS Excel worksheet]

 

Excel Worksheet Sample Copy