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Accrued Vacation and PTO Liability Calculator (ASC 710)

What do these figures come to once the work is shown?

Compensated absences liability from unused hours, pay rates, employer payroll taxes and expected forfeitures.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Accrued vacation liability
$470,672
Including employer taxes
Pay at current rates
$456,000
After expected forfeitures
$433,200
Drawn to one scale
Accrued vacation liability$470,672
Pay at current rates$456,000
After expected forfeitures$433,200
Employer taxes and benefits$37,472
All results
MeasureResult
Accrued vacation liability$470,672
Pay at current rates$456,000
After expected forfeitures$433,200
Employer taxes and benefits$37,472
How this was worked out
Work shownrecomputed as you type
Pay = unused hours x pay rate
After forfeitures = pay x (1 - forfeiture rate)
Liability = after forfeitures x (1 + employer tax and benefit rate)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Pay = unused hours x pay rate
  • After forfeitures = pay x (1 - forfeiture rate)
  • Liability = after forfeitures x (1 + employer tax and benefit rate)

How it works

ASC 710-10-25-1 requires an accrual for compensated absences when four conditions are met: the obligation relates to services already rendered, the rights vest or accumulate, payment is probable, and the amount can be reasonably estimated. Vacation that is use-it-or-lose-it at year end does not accumulate.

Sick pay that accumulates but does not vest may be accrued but is not required to be, under ASC 710-10-25-7. Forfeitures apply to accumulated rights that do not vest.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Current pay rate or future rate?

ASC 710 does not set the rate. Use current pay rates or the rates expected when the absence is paid, and apply the choice consistently.

Is the liability discounted?

ASC 710 does not call for discounting. The tool measures the liability at undiscounted pay.

Does this follow the government standard?

No. Governments follow GASB Statement No. 101, which has its own recognition model.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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