How to set up Benefit Schedule for California Paid Sick Leave Law 2015

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How to set up Benefit Schedule for California Paid Sick Leave Law 2015 Products Sage 100 ERP

Description California Paid Sick Leave Law effective July 1, 2015 Healthy Workplace Healthy Families Act of 2014 (AB 1522) CA Mandatory Paid Sick Leave

Disclaimer Backup Warning Use caution when working with the below product functionality. Always create a backup of your data before proceeding with advanced solutions. If necessary, seek the assistance of a qualified Sage Business Partner, network administrator, or Sage Customer Support Analyst. Support Sage Customer Support does not provide assistance for issues related to third party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Please contact your Sage Business Partner, network administrator, or accountant for assistance. Please review this document for additional information on the scope of Sage Customer Support Services.

Cause • An employee working in California, on or after July 1, 2015, for 30 or more calendar days within a year is entitled to paid sick leave. This applies to temporary, part-time and full-time employees.

• Employees who have worked more than 30 days and have been employed over 90 days in 2015 or Employers who use the "Up-front" method are not subject to delays in accruing or using sick time.

• If your company already offers more time and usage than provided in the Paid Sick Leave provisions, you may not need to make any changes.

• For more information go to the following CA websites: ◦ FAQs: http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm ◦ Healthy Workplace Healthy Family Facts: http://www.dir.ca.gov/dlse/ab1522.html ◦ Paid Sick Leave Webinar: http://www.dir.ca.gov/dlse/Paid_Sick_Leave_4.8.15_v2.wmv

Resolution

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How to set up Benefit Schedule for California Paid Sick Leave Law 2015

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• NOTICE: This article is provided for informational purposes only and cannot be construed as professional tax advice. Please consult your certified tax consultant to ensure compliance with all applicable laws.

We highly recommend that you setup in a test company first to ensure benefits are calculating like you are expecting.

- Define Benefit Accrual in Payroll Options: 1. Open Payroll, Setup, Payroll Options 2. Click the Additional tab, make the following selections and click Accept: ◦ Accrual Report Display Option = Hours ◦ Base Benefit Availability on = Limit ◦ Base Benefit Accrual on Date of = Hire ◦ Hours to use for Benefit Limit to = Accrued Hours Only

- Verify Employee Hire Date: 1. 2. 3. 4.

Open Payroll, Main, Employee Maintenance Select Employee No from look up On the Main tab, verify a valid Hire Date is entered Repeat steps #2-3 for each applicable employee

- Define Benefit Schedule: There are 2 methods of compliance: • Accrual Method: ◦ Paid sick leave accrues at the rate 1 hour per every 30 hours worked. An employee who works 40 hours per week accrues 1.33 hours per week. ◦ Accrued paid sick leave must carry over to the following year and may be capped at 48 hours (or 6 days) based on a policy ◦ Employers are required to reinstate any accrued but unused sick leave if the employee returns within 1 year. ◦ It is recommended that the benefit accrual reports are printed and retained at the end of every quarterly close.

• "Up-front" (Advanced) Method: ◦ Employer can provide 24 hours or 3 days at the beginning of each calendar year, anniversary date or twelve month basis. ◦ Employer won't need to track accrual but will need to track and display usage on wage statement or written document issued the same day as a paycheck ◦ Employer is not required to provide for carry over of sick leave

Accrual Method Benefit Schedule: 1. Open Payroll, Setup, Benefit Schedule Maintenance 2. Create a Benefit schedule using the example shown below. There is no requirement to use the Schedule Code (SL) or Description (Paid Sick Leave) as shown in the example below.

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How to set up Benefit Schedule for California Paid Sick Leave Law 2015

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• The delay period is set to 30 days as the employee must complete 30 days of employment to become eligible to accrue sick time. • The Eligibility Hours is set to 3 as the employee must be an employee for 90 days in order to use any accrued sick time. • Accrual rate is set to 0.0333333 and will accrue 1 hour of sick time for every 30 hours worked.

"Up-front" (Advanced) Method Benefit Schedule: 1. Open Payroll, Setup, Benefit Schedule Maintenance 2. Create a Benefit schedule using the example shown below. There is no requirement to use the Schedule Code (FL) or Description ("Up-front Sick Leave) as shown in the example below.

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How to set up Benefit Schedule for California Paid Sick Leave Law 2015

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- Assign benefit code to employees 1. 2. 3. 4. 5.

Open Payroll, Main, Employee Maintenance Select Employee No from look up Click on Wages Tab In the Benefit Code field, select appropriate Benefit Code from look up Click Accept

TIP: In order for benefit amounts to show on the Benefits Register printed during data entry, you must setup G/L accounts in Department Maintenance, see related article below, "No benefits in range to print".

- Modify Check and Direct Deposit Forms Employers must show on the pay stub how many days of sick leave employees have available. Crystal Reports Designer is included with Sage 100 ERP and must be installed to modify check forms and direct deposit stubs. If you need assistance with making these modifications, see KB 19634 on How to access Crystal Reports resources and help. • Customer Support cannot assist with creating custom Crystal Reports. • Consult your Sage Software business partner for hands-on assistance with customized Crystal Reports and forms.

Important Note about Sick Pay Rates: • Sage 100 ERP does NOT automatically calculate a blended pay rate per hour when there is a difference in pay rates throughout the year or are paid by piece or commission. Here are examples on how to calculate the Sick Pay Rate: • Employee is paid commission or piece rate, then divide total compensation for previous 90 calendar days by number of hours worked and pay this rate. • Employee was paid a piece rate of $0.36 per square foot for 16,500 square feet during 400 hours of work in a 90 day period. He earned $5,940. ◦ His hourly rate for paid sick leave is $5,940 ÷ 400 hours = $14.85 per hour • Employee is paid on commissions only. In a 90 day period, she worked 480 hours and earned $9,000. ◦ Her hourly rate for paid sick leave is $9000 ÷ 480 hours = $18.75 per hour

See related artricle below, for detailed information on How to setup Benefit Schedules

Related resources Error: "No benefits in range to print" How to access Crystal Reports resources and Help How to print vacation, sick or PTO accrual on Payroll checks or direct deposit stubs. How to set up and apply changes Benefit Schedule Maintenance

Additional Information In payroll data entry, when attempting to pay accrued sick time before the 90 day delay period expires, the following message will display:

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How to set up Benefit Schedule for California Paid Sick Leave Law 2015

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This is a only a warning message and does NOT delete the line entry. If the line is not deleted in data entry, the employee may be paid for unearned sick time.

Category Configuration Settings and preferences

Entitlement Sage 100 ERP Last Modified Date: 6-25-2015 ID: 55671

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