LSL Service Period Accrual Rule

Choose one of the following calculation methods:

• Fixed Amount Per Day: This method accrues a fixed amount per day of service (as configured in the LSL policy in Pay Setup > Long Service Leave in the Configuration section). The amount that’s accrued is based on the value entered in the LSL Accrual Amount field.
• This calculation method provides a stable accrual, but there’s a chance that employees might over- or under-accrue due to factors such as:
• Precision of five decimal places being insufficient for extended periods, such as ten years
• Leap years
• Dynamic Annual Target: This method accrues the total balance that you set for a given LSL anniversary year.
• Note: The LSL anniversary isn’t the same as the calendar year. The LSL anniversary is a year’s worth of service days, which might be longer than a calendar year due to breaks in service.
• This calculation method processes accruals such that the factors described above for the Fixed Amount Per Day method are accounted for and the accrual is adjusted up or down as needed. This results in an accurate accrual over time, but might result in occasional accrual increases or decreases.

The difference between the Fixed Amount Per Day and Dynamic Accrual Target methods is how Dayforce determines the daily accrual rate. Whereas the Fixed Amount Per Day method uses the specified value, the Dynamic Accrual Target method calculates the value to use on any given date in a few stages. As a best practice, you can review the following values and settings to ensure a proper calculation:

1. Check that the recurrence date is an active service date, based on the LSL policy settings as configured in Pay Setup > Long Service Leave in the Configuration section. If this isn’t the case, the accrual amount is zero.
2. Locate the LSL anniversary year as specified. This information is located in Dayforce’s database (in the EmployeeLSLAnniversaryDate table), which requires specific access and an advanced understanding of Dayforce’s database. If you can’t locate the LSL anniversary year, the daily accrual amount is zero. If you do locate an LSL anniversary year, take note of the number of service days and the start date.
3. Count the number of active service days (that is, employee’s LSL service period) between the start date and recurrence date. This should be a value between 1 and 366. Note that this isn’t always the same as the number of calendar days between these dates. Further, note that Dayforce calculates the number of service days using the following formula:
4. Daily Accrual Amount = Round5dp(Annual Target * DayNo / Days) - Round5dp(Annual Target * (DayNo-1) / Days)

As with the Fixed Amount per Day method, if the sum of all amounts within the accrual window is zero (that is, entirely non-service), you shouldn’t add a record to the balance.

Enter the amount of LSL to be accrued per day. Note that entitlements are processed only up to five decimal places. If you enter additional numbers, they won’t increase the accuracy of the calculations.

Note: This setting applies only when the Calculation Method is set to Fixed Amount Per Day.

Enter the amount of LSL to be accrued per LSL anniversary year. Note that entitlements are processed only up to five decimal places. If you enter additional numbers, they won’t increase the accuracy of the calculations.

Note: This setting applies only when the Calculation Method is set to Dynamic Annual Target.

The type of period the rule uses when it looks back. Periods can be measured in days or weeks. For example, if you enter 2 in the Number of periods to look back field and select Weeks in the drop-down list, Dayforce looks back two weeks.

Note: The Exclude Recurrence Date setting determines if the lookback should include the recurrence date, or if it should look back to a period that is one day prior to the recurrence date. See Lookback Period Examples.

The number of periods the rule looks back, including the current one, for eligible work.

This settings works in conjunction with both the Period Type and Exclude Recurrence Date settings which alter the period the rule examines. See Lookback Period Examples.