Annual cycle for ATK in HRM Payroll

Here we describe the various routines you need to run throughout the year when using ATK (working time account). The steps form a cycle that repeats every year.

Please note that if this is the first time you are using the ATK function in HRM Payroll, it may not be necessary to start with step one.

1. Start a new qualifying period

The first step in the annual cycle is to start a new qualifying period. This should be done when the last payroll run for the previous qualifying period is completely finished and settled, but before you create the first payroll run for the new period.

If the qualifying period starts on 1 January according to the collective agreement, you must complete the payroll run for December before starting the payroll run for January.

It is very important that you do not start the new qualifying period until you are completely sure that no more payments will be made for the previous period, as this step cannot be undone.

Do as follows:

Go to Administration > Actions processed > Annual routines > ATK / ATF shift. In the overview view, you can see the employees who have an ongoing qualifying period and a withdrawal period.
Click the button Start a new qualifying period at the top.
In the window that opens, enter the start date for the new ATK year. The system will then identify all employees with an ATK agreement that has the same start date.
Tick the checkbox Calculate number of hours for paid free time if the system should at the same time calculate how many hours of leave the employee can take out for the period that has just ended. This is the same calculation as described in step two, and it's common to do this simultaneously.
You can filter by a specific ATK / ATF agreement or by employees if you want to run the routine for one group at a time.
Start the routine by clicking Create.

When the calculation is complete, the list is updated. You now see the new, empty qualifying period in the blue column. The finished qualifying period has been moved to the yellow columns for the selected period. These are the earned funds the employee should now choose what to do with.

2. Calculate hours (ATK)

If the employee, according to the agreement, can choose to take their working time account as paid time off, you need to calculate how many hours they can be off. This is usually done at the same time as you start the new qualifying period (see previous step), but it can also be run separately.

You run the calculation by clicking the button Calculate hours (ATK) in the overview view. The calculation is only made on the employee's selected period and can be run several times.

The calculation is based on the scheduled hours for the ATK year, taking into account any time absent. Based on this specification, the number of hours is calculated using the percentage specified for ATK.

Formula for calculation:

A = Number of scheduled hours during the qualifying period
B = Number of hours absent from pay codes marked with "Count as absence time (ATK)" during the qualifying period.

Note that sums are made for pay rows that have a date during the ATK year. Transactions without a date are counted as belonging to the discrepancy period's empty date.

Number of hours = (A–B) × ATK allocation %

The result is rounded and checked against the maximum limit set in the ATK / ATF agreement.

3. Employee’s choice

The next step is for the employee to choose what to do with their earned working time account. If employees do not have a choice, for example if the agreement only allows withdrawal as paid time off, you set this as the default choice in the ATK / ATF agreement and can go straight to the next step.

For employees who need to make a choice, you enter a deadline in the ATK / ATF agreement. You can also configure reminders by email, notes in HRM Mobile or on the front page in Flex HRM to remind employees and managers that it’s time to make a choice.

The employee makes their choice on the front page in Flex HRM, in the ATK / ATF panel. Note that the employee must have authorisation for this panel. After the option has been submitted, the employee can change their response until the deadline.

As Administrator, you can always manually register the employee’s choice in the employee register under the ATK / ATF tab.

4. Apply choices and start a new withdrawal period

When all employees have made their choices, you should apply them. This routine also starts a new withdrawal period for those who chose time off and creates transactions in the payroll preparation for those who chose paid compensation, pension provision, or have remaining time that should be paid out.

Because of this, there must be a preliminary payroll run for all affected employees before you run the routine. This should be the first ordinary payroll run in the new withdrawal period.

Important to keep in mind:

The routine for applying choices should be run as the last step in the payroll run, after you’ve collected discrepancies such as absence. This ensures the ATK leave balance is correctly reduced before any remaining time is paid out.
This routine cannot be reversed.

Do as follows:

Check in the overview view that all employees have made a choice in the yellow columns. If you use a default choice for those who do not make an active choice, not everyone needs to have made a choice.
Click the button Apply choices and start a new withdrawal period.
In the dialogue box, enter the start date for the new withdrawal period.
You can filter by agreement or employees. It may be a good idea to first test with a separate employee to ensure all pay codes work as intended.
Click Apply.

When the routine is done, you will see in the overview view that the selected period has become the new withdrawal period.

At the bottom of the payroll preparation, under the ATK tab, you can now see both the completed withdrawal period (where any remaining balance has been paid out) and the new withdrawal period.

Examples of outcomes in payroll preparation

Example 1: An employee had remaining free hours from the previous period and has chosen paid free time for the new period as well. The system then pays out the remaining balance from the completed year, and the new balance for the withdrawal period is displayed.

Example 2: An employee has a remaining balance from the previous period that is paid out (marked in yellow). For the new period, they have chosen to receive the money as a payout (marked in blue). Both the completed and new withdrawal periods are reset.

Example 3: An employee had 20 hours left at the start of the payroll run and took out 16 hours at the end of the period. After discrepancies have been collected, the routine for applying choices is run. The remaining four hours are then paid out. They have also chosen paid compensation for the new period, which is also paid out.

5. Payment of extra pension provision

If employees have chosen extra pension provision, this needs to be managed manually.

You can easily produce a specification using the report Allocation of number and amount. Choose to sum the pay code you use for pension provision and group by employee to get a clear list.

Based on the list, you then carry out the extra pension provision in accordance with your collective agreement and the pension insurance you use.

Related articles:

What is a working time account (ATK) and shortening of working hours (ATF)?

How does the ongoing management of ATK and ATF work?

Warnings related to ATK / ATF shift and how to manage them

Please note: This article is AI-translated. This means that linguistic errors or misunderstandings may occur.

What do the annual routines for working time account (ATK) look like?

The article describes the routines to be run throughout the year if you use ATK.