What is Compensatory/Banked Time?

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Compensatory/Banked time is a practice that employers can use to track additional hours that an employee worked instead of compensating as overtime pay. Compensatory/Banked time can be setup as an accrual in Sage 300 to track these hours worked. Since there is no calculating method or an increment amount or percentage, some standard setup options for an accrual code are not available. The employees accrue compensatory/banked time simply by entering the hours on a timecard. Different companies have different rules, so there are some options like setting up a maximum accrual and a maximum amount one can carry over to the following year.

Compensatory/Banked time can also be used in an overtime schedule where overtime can be stored as Compensatory time. Selecting the option “Pay Regular Hours Shortage from Compensatory Time” will allow the system to automatically make up the shortage with compensatory/banked time already earned by an employee when the number of hours the employee worked do not fulfill the number of hours required for the pay frequency.