🛠️ How to Set Up a PTO Plan in ADP RUN Payroll: A Step-by-Step Guide

Managing paid time off (PTO) is essential to keeping your team happy and compliant with labor policies. If you use ADP RUN, setting up a PTO plan is straightforward — but only if you know where to look. This guide walks you through every step, from setup to payroll integration.

Let’s get started.

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🛠️ Step 1: Access the PTO Settings

1. Log in to your ADP RUN account.

2. In the left-hand navigation menu, go to Settings.

3. Scroll down and select “Paid Time Off” under the Time section.

This is where you’ll manage your time-off policies, accrual rules, and employee assignments.

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➕ Step 2: Create a New PTO Plan

1. Click Add Plan.

2. Choose your plan type: Vacation, Sick, Personal, or a Custom plan.

3. Click Next and begin configuring the plan.

4. Select which employees will be eligible for this plan.

You can create multiple plans if different roles or employee classes require unique policies.

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📊 Step 3: Define Accrual Rules

Decide how your employees will earn PTO:

• Per hours worked (e.g., 1 hour per 40 hours worked)

• Per pay period (e.g., 1.5 hours per biweekly pay period)

• Annual front-loading (e.g., 80 hours granted upfront each year)

ADP provides an optional calculator to help you project and verify totals.

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🔁 Step 4: Set Reset & Carry-over Rules

Determine how unused time rolls over and resets:

• Reset schedule: Calendar year, hire date anniversary, or custom date

• Carry-over rules:

  • Unlimited: All unused hours roll over

  • Capped: Limit how many hours roll over (e.g., 40 hours max)

  • None: Use-it-or-lose-it policy

Make sure your policy aligns with applicable state laws.

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✅ Step 5: Configure Additional Options

ADP RUN lets you fine-tune your PTO plan with optional features:

• Automatically assign plan to new employees

• Accrue time while on leave

• Award PTO for employee anniversaries

Once configured, click Confirm & Add to finalize the PTO plan.

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👤 Step 6: Assign PTO to Employees

1. Under Settings > Paid Time Off, view the PTO plans you’ve created.

2. Click on the plan you want to assign.

3. Select employees to enroll.

4. Set their starting balances and carry-over hours, if applicable.

5. Click Confirm & Add.

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⚙️ Optional: Customize Plans for Individual Employees

If specific employees have different terms (e.g., senior staff with more PTO), you can:

1. Navigate to People.

2. Select the employee and open their Paid Time Off tab.

3. Click Edit to adjust:

   • Accrual rate

   • Carry-over limit

   • Reset schedule

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🔧 Step 7: Use PTO in Payroll

When you process payroll:

• ADP will automatically deduct PTO hours from employee balances.

• You can review and edit entries directly from the timecard or payroll worksheet.

• Make sure PTO hours are recorded correctly for compliance and reporting.

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📝 Quick Summary

Step	Action
1. Settings → PTO	Access the PTO setup page
2. Add Plan	Create a new PTO plan
3. Accrual Rules	Define how PTO is earned
4. Reset & Carry-Over	Set roll-over and reset parameters
5. Additional Options	Automate accruals and milestone awards
6. Assign Employees	Enroll staff and input starting balances
7. Customize Plans	Adjust settings for specific employees
8. Payroll Integration	Ensure PTO is applied during payroll runs

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💬 Final Thoughts

Setting up PTO in ADP RUN doesn’t have to be a hassle — once the plan is in place, it will save you time and help keep your team’s benefits clear and transparent.

Need help choosing accrual policies or setting up compliance-friendly PTO plans? Drop a comment or get in touch — we’re happy to help.