Different Provinces in Canada and different States in the US have their own regulations on sick time compensation. Different employers may also offer different Sick Time/Pay to their employees through use various methods but are within the regulations in each employee’s jurisdiction.
A couple of commonly used methods are referenced below:
- Lump Sum method – the employee gets a lump sum at the beginning and not accrue any hours or amount for the rest of the year.
- Accruing method – the employee gets a certain number of hours or percent of their pay for a certain pay frequency.
The commonly used method to track and consume or pay this time is to create an Accrual. Here’s how you can setup these 2 scenarios in Sage 300 using the following criteria:
Lump Sum Method
Scenario:
- Get 40 hours at the beginning of the calendar year.
- No accruing the rest of the year.
- Cannot bring unused portion to the next or new year.
Setup of some fields and values as suggested for this scenario:
- Go to Payroll Setup.
- Double click on Earnings and Deductions.
- Enter or select the appropriate options as shown in the following tabs:
Basic Info:
- Earning/Deduction name: SICK
- Description: Sick Time
- Short Description: Sick Pay
- Category: Accrual
- Type: Sick
- Employee Calc. Method: Hours per Frequency
- Frequency: select one (Weekly, Bi-weekly, Semi-monthly, Monthly)
- Level: (use a value = value selected for earnings codes + 1)
- Starts: Date of Hire
- Ends: N/A
- Linked Accrual Earning: Optional
Employee:
- Cap Accrual at Max. Accrual: select this option so employee cannot accrue anymore when some hours are used.
- Through Service Year: 99.
- Beginning: 40.
- Increment: 0
- Accrual: 40
- Carry-over: 0
- Accrual Payments Subject to the Following Taxes: Select the appropriate taxes :
Calc Base
- Base Earning Include: select the earnings that sick can accrue on.
- Base Deductions Include: select any deductions that sick time should not accrue on.
G/L Dist
- Select the GL Expense account for paying out sick pay.
- Save this sick code.
- Add them to each qualified employee and this sick code is ready to go.
Accruing Method
Scenario:
- Can accrue 1.54 hours every 2 weeks up to 40 hours in a calendar year.
- No more accruing after hitting the max of 40 hours.
- Cannot bring any unused portion to the next or new year.
Setup of some fields and values as suggested for this scenario:
- Go to Payroll Setup.
- Double click on Earnings and Deductions.
- Enter or select the appropriate options as shown in the following tabs:
Basic Info:
- Earning/Deduction name: SICK
- Description: Sick Time
- Short Description: Sick Pay
- Category: Accrual
- Type: Sick
- Employee Calc. Method: Hours per Frequency
- Frequency: select one (Weekly, Bi-weekly, Semi-monthly, Monthly)
- Level: (use a value = value selected for earnings codes + 1)
- Starts: Date of Hire
- Ends: N/A
- Linked Accrual Earning: Optional
Employee:
- Cap Accrual at Max. Accual: select this option so employee cannot accrue anymore when some hours are used.
- Through Service Year: 99
- Beginning: 0
- Increment: 1.54 (for a bi-weekly employee)
- Accrual: 40
- Carry-over: 0
- Accrual Payments Subject to the Following Taxes: Select the appropriate taxes.
Calc Base
- Base Earning Include: select the earnings that sick can accrue on.
- Base Deductions Include: select any deductions that sick time should not accrue on.
G/L Dist
- Select the GL Expense account for paying out sick pay.
- Save this sick code.
- Add them to each qualified employee and this sick code is ready to go.
When sick hours are being, just enter the Sick code in a timecard for the appropriate hours and enter the Type as Payment and the accrued total will be reduced. If adjustments are needed, Transaction History can be used to adjust the balance of the Sick code.
