By Intious · Updated September 7, 2026
Carryover adds an opening balance; a balance cap limits what can be held. A cap applied after every accrual can differ from one applied only at the end.
Separate the two limits
A carryover limit applies when moving a balance into a new policy year. A balance cap can apply throughout the year. A person may have a 40-hour carryover limit and a 160-hour balance cap; these are different inputs.
Timing matters
Start with 100 hours under a 100-hour cap. If ten hours accrue while capped and ten hours are then used, the actual balance may be 90. An ending-balance formula would calculate 100 + 10 − 10 = 100. The calculator explicitly uses the latter simplified method.
Reconcile with transactions
For an exact audit, list accruals and leave debits in date order and apply the cap at each posting. Ask whether accrual stops while capped or is tracked separately. Avoid projecting an exact entitlement from annual totals alone.
Try it with your numbers
Calculate PTO earned per pay period and project an available balance.
PTO Accrual Calculator