The three methods
- Per pay period: hours per period = annual hours ÷ pay periods per year. 80 hours on a biweekly payroll is about 3.08 hours per period.
- Per hour worked: accrual rate = annual hours ÷ full-time hours per year. 80 ÷ 2,080 is about 0.0385 hours per hour worked, or 1 hour for every 26 hours worked. This is the structure many paid sick leave laws use.
- Front-loaded: the full year's hours arrive at the start of the year.
Caps and carryover
An accrual cap is a maximum balance: while someone is at the cap, they stop earning, so the calculator shows hours "not earned because of the cap". A carryover cap limits how many unused hours move into next year: carried hours are the smaller of the year-end balance and the cap. The rest is forfeited, unless your state requires payout or prohibits forfeiture.
Planned use is spread evenly across pay periods, which is a simplification. Real time off comes in chunks, so an employee near the cap may stop earning for a few periods before a vacation and start again after.
Check your state's rules
There is no federal law requiring paid vacation, but many states and cities have paid sick leave laws with minimum accrual rates and carryover rules, and some states treat earned vacation as wages that must be paid out at termination. Check your state labor department before you set a policy. Our PTO accrual guide walks through the math with worked examples, including mid-year hires.
Frequently asked questions
How do I handle a mid-year hire?
With per-pay-period accrual, start counting from their first pay period. With front-loading, a common approach is annual hours × months remaining ÷ 12.
Do part-time employees get PTO?
That's a policy decision unless a state or local law requires paid sick leave. Per-hour-worked accrual handles part-time and variable hours fairly.
Does this store employee data?
No. Nothing you type leaves your browser or is saved. Close the page and it's gone.
Read the full guide
Sources
Results are estimates for planning, not professional advice. Check the official sources above for rules that apply to you.