Vacation: Accrual vs Non Accrual?

Stephen G asked:


I am the new office manager of a newly formed non-profit agency. In setting up the benefits package we a re leaning towards non-accruing vacation. I was wondering the pros and cons of each and also how to calculate the vacation for employees who start throughout the year? Any advice is appreciated!

Calvin

Tags: Non Profit, Profit Agency, Vacation Accrual

This entry was posted on Thursday, July 23rd, 2009 at 8:22 pm and is filed under vacation package. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Vacation: Accrual vs Non Accrual?”

1. compunerd20 Says:
   July 24th, 2009 at 5:35 pm

   Jeanne

   The best approach to take regarding vacation benefits is accrued. If you give employees non-accrued vacation and they quit or get fired, most states require that you pay them out for all of the vacation you have given them. If the vacation is accrued, you only have to pay them for what they have earned. This will reduce any overhead costs associated with employee turnover, when it happens, and you are adding to the bottom line. You might also want to to consider doing Paid Days Off (PDO) rather than categorizing vacation from sick time and personal time. Again, you have to pay them for all of that. Plus it makes your job less difficult by not having to track all of those categories for all your employees. Accrued PDO is such a common policy these days that most employees don’t bat an eye at it as long as it’s a fair amount of days your are allowing them to accrue. You might want to research what your state says about vacation payout for former employees before you make a final decision.