How to set up and pay TOIL of overtime worked

Eclipse Payroll now supports the paying of Time-Off-In-Lieue (TOIL) of Overtime. 

This feature allows Employees to bank leave that can be taken later instead of being paid money for Overtime worked. The rate at which the Leave accrues is determined by the Overtime rate. If the Overtime Rate is 1.5x normal pay, then for each hour worked on this Rate, 1.5 hours of Leave are accrued instead of the Employee receiving any pay for it. TOIL paid as Overtime is a new type of special rate.

TOIL leave accrued in this way can be Taken by the Employee at a later date, or can be Cashed Out. 

Note that typically TOIL Leave has rules around taking the leave within a certain time-frame. For example, a common arrangement is that Leave must be Taken or Cashed out within a certain number of days after accruing the leave. Eclipse includes tools to help you manage this requirement.

When taken or cashed out, note that TOIL is paid at the Employees current base rate.

Setting up the TOIL Leave

1. Under the Options tab, click Leave.
   
   
   
2. Create a new leave for Overtime TOIL. Ensure the Leave Accrual Method is No Accrual Leave.
   
   
   
3. Under the Options tab, click Pay Grade.
4. Navigate to the Leave tab and assign the new TOIL Leave to the relevant pay grades by clicking the +.
   
   
   
5. Still in the Pay Grade screen, navigate to the Special Rates tab.
6. Create Overtime Paid as TOIL rates as required. Link the new special rate to the TOIL Banked Leave. 
   
   
   
7. In the Main tab, click Employee. Select and Edit an employee, and navigate to the Leave tab.
   
   
   
8. Use the + to add the new TOIL Leave to the employee.
   
   

Accruing Overtime as TOIL

1. In the Payrun, create the Employees Pay as per usual.
2. In the Overtime/Special Pay column, enter any hours of overtime worked, and select which overtime rate. You can see in the below screenshot that Overtime for TOIL is a lighter shade of red to differentiate between normal overtime pay. You will also see the accrual and breakdown at the top of the screen.
   
   
   
3. Commit your payrun as per usual. An example of the payslip is shown below.
   
   

Taking TOIL

1. In the Payrun, create the Employees Pay as per usual.
2. In the Leave column, select the TOIL Leave and enter the hours taken.
   
   
   
3. Commit the payrun as per usual.

Cashing out TOIL Leave

1. In the Payrun, click Cash Out Leave in the bottom left.
   
   
   
2. Enter the TOIL Leave and the Hours to be cashed out.
   
   

Monitoring and Reporting TOIL

Employee Leave settings are managed from the Leave Tab in the Employee Editor. After creating OT as TOIL rates in the Grade, you need to make sure the Employees receiving this rate are linked to the Leave it uses to accumulate the banked TOIL hours.If you do not do this - the Rate will not be available for use in the Pay Editor. 

Note that we have added a new feature to the Employee Editor - Leave Tab to assist with the management of TOIL and other Leave classes. Note the addition of the Show Leave Accrual History buttons below. These provide access to a new screen which allows you to view the complete Accrual/Decrual history for any Leave attached to the Employee. The screen shows every accrual/decrual event to occur to the Leave and it allows you to monitor changes to the Balance over time. 

Note the Accruals Overdue to be Used feature at the top of the screen (see screen shot below). This feature allows you to set a Use By Date for each Leave Accrual that has occurred for the Leave selected. 

The example below shows how the Accruals Overdue to be Used feature has been set up to treat Accruals as overdue to be taken if not used within 6 days of accruing it (just as an example).

With this setup note the UseByDate and also the Overdue columns in the grid. The UseByDate shows the date that particular accrual must be used by according to the Overdue parameters set. The Overdue column contains the amount of hours NOT used from that Accrued amount based on Leave Taken/Cashed since the accrual occurred.

Note this information can be printed using the Report button and this can be distributed to your Employee to help them manage their taking of Leave.

If your TOIL agreement with Employees includes a provision to ensure TOIL Leave is used within a certain amount of time, then use this feature to track this. Note that the Payrun will not warn you as to when TOIL Leave must be taken or cashed out. You must manage this in conjunction with your Employee and using this tool.