Time off Support

Vacation Policy Requirements for Payroll Support
Some churches want to track and manage vacation time through the payroll system. While that’s something the system can support, there are several important requirements that must be met before we can set that up.

Time off policies are subject to legal standards, and it’s critical that any vacation plan tracked in payroll is backed by a well-written policy that is followed consistently.

Why a Legally Sound Vacation Policy Matters
Vacation policies aren’t just internal preferences—they’re considered part of an employee’s compensation and are governed by labor laws that vary by state. A policy that doesn’t meet legal standards, or that’s applied inconsistently, can expose your church to risk.

Here’s why a formal vacation policy is required before payroll can support time off tracking:
  • Legal Compliance: Time off rules differ across state and federal lines. A clearly written policy ensures that vacation benefits align with what the law requires—and what it allows.
  • Clarity and Consistency: A documented policy provides clarity to your staff and ensures consistency across your team. This prevents confusion and protects both the employee and the church if questions ever arise.
  • Accurate Payroll Setup: Vacation tracking in payroll must be tied to specific rules—how time is earned, used, carried over, and paid out. A clear policy is what ensures the system tracks time correctly.


What a Legally Sound Vacation Policy Should Include
To be tracked through payroll, your vacation policy should clearly define:
  • Who is eligible (e.g. full-time vs. part-time staff)
  • How much vacation is provided and how it’s calculated (e.g. accrual vs. lump sum)
  • When vacation can be used (e.g. after a probationary period)
  • How vacation is tracked (e.g. monthly accrual, annual reset)
  • What happens to unused time (carryover limits, caps, payout at termination)
  • How time off is requested and approved
  • Applicable legal standards for your state

The policy should be reviewed and approved by your leadership and reflect all relevant employment laws that apply to your location and staff structure.


Requirement 1: The Church Must Provide the Actual Vacation Policy
Before anything is entered into the payroll system, the church must provide a finalized, written version of its vacation policy. This ensures we have a clear, authoritative document to reference when configuring vacation tracking in the system.

The policy must define the structure for accrual, usage, carryover, and any payout obligations. It also must align with all applicable laws based on your church’s location. We can only enter vacation rules into the payroll system once this policy is in place and clearly defined.


Requirement 2: The Church Is Fully Responsible for Time Off Approvals
While the payroll system can track available vacation balances and record time used, all time off approvals must be handled directly by the church. The church decides when time off can be taken, ensures appropriate staffing levels, and verifies that time off complies with the internal policy.

This keeps decision-making with those who best understand the church’s calendar, staffing needs, and ministry rhythms. Once approved, vacation hours can be entered into payroll for processing.

Requirement 3: The Church Must Follow the Policy Consistently
A vacation policy is only effective—and legally sound—when it’s followed consistently. That means:
  • Time off is approved and tracked according to the written policy.
  • Vacation accruals, carryovers, and payouts match what’s outlined in the policy.
  • All staff are treated consistently under the policy’s terms.

The payroll system will be set up to match the policy exactly. If practices don’t align with what’s written, it can create issues with tracking, reporting, or even compliance.

Final Notes
Setting up vacation tracking in payroll is a helpful way to streamline processes and improve transparency with your team. But it only works well when backed by a policy that is both clear and consistently followed.

Once your church has a policy in place that meets these requirements, we’ll be ready to support vacation tracking in the payroll system accordingly.