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How do I set up a sick pay accrual for Colorado?

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Summary

Set up Sage 300 CRE Payroll to meet the Colorado sick pay requirements.

Description

The act requires all employers to provide paid sick leave to their employees.

  • Starting January 1, 2021, employees should accrue up to 48 hours (six days) sick pay per year
  • Employees will earn at least 1 hour of paid leave for every 30 hours worked
  • Accrued paid sick leave should carry over to the following year of employment and can be capped at 48 hours or 6 days

You can review the frequently asked questions on the Colorado website.

Resolution

CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.

Follow the process below to create the necessary formulas and use them to calculate on your employee's checks.

Create formulas for accrual

Accrue sick units based on hours worked. See steps to create a formula.

  1. Create a TOTAL HOURS formula that contains the following fields and parameters:
    Regular Hours(PR Check) + Overtime Hours(PR Check)
  2. Create the CO_SICK ACCR formula that contains the following fields and parameters:
    TOTAL HOURS(Public Formula)/30

Accrue 1 hour of sick time for every 30 hours worked:

  • The basis is the TOTAL HOURS formula with a rate of 1/30th of an hour per hour worked
  • Works 15 hours: Accrue 0.5 hours of sick time
  • Work 30 hours: Accrue 1 hour of sick time
  • Work 60 hours: Accrue 2 hours of sick time
  • Work 10 hours per week for 3 weeks: Accrue a total of 1 hour of sick time for the 30 hours worked

Set up accrued sick time Pay ID

  • From the Payroll Setup menu, select Pays.
  • Enter a Pay ID "COSICK" and Description.
  • Select Accrual from the Pay Type drop-down list.
  • Clear all Distribute to check boxes.
  • Select Formula from the Calculation method drop-down list.
  • Select the CO_SICK ACCR in the Formula field.
  • Select the Retain YTD totals at close year check box.
  • Select the Units check box.
  • Click Save, then Close.

Add the Pay ID to the Employee Pays

  1. From the Setup menu, select Employees.
  2. Select the employee and click Pays.
  3. Enter the Pay ID you set up in step 3 above.
  4. Select the Auto check box.

Set up a Pay ID to pay sick time

  1. From the Payroll Setup menu, select Pays.
  2. Enter the new Pay ID "CO SICK PD" and Description for the sick pay.
  3. Select Other from the Pay Type drop-down list.
  4. Set up to automatically pay the employee based on their regular pay rate.
  5. Select the Retain YTD totals at close year check box for this pay id.

Create formula for check stub

This formula returns the number of sick days the employee had available, as required by the law.

  1. Create a SICK BALANCE formula:
    (Lookup(YTD Units[PR Employee Pay], Employee[PR Check],5,"COSICK")-Lookup(YTD Units[PR Employee Pay],Employee[PR Check],3,"CO SICK PD"))
  2. Add the formula to the check stub.

Optional report

Sage provided a Sick Pay report attached below. Quality Assurance didn't review the report.

This report shows Sick Accrued (earned), Sick Taken, and Sick Paid. Enter the specific Pay IDs you use. It includes a balance column that shows the Earned-Taken for Sick units only.

Attachment: PRSickBalancesByDateRange.rpt