What is vacation accrual?

Vacation accrual is the amount of paid time off (PTO) that an employee has built up over time in line with their company's PTO policy. For example, an employee may accrue eight hours of paid time off every two weeks.

Why is vacation accrual important?

Vacation accrual is important to employees so that they know how much PTO they can take and can plan ahead accordingly. Vacation accrual is also an important HR metric for accounting purposes, as the collective vacation accrual figure for the entire company is a liability for the employer.

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