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How do I set up a Massachusetts sick pay accrual?

Created on  | Last modified on 

Description

  • Under this new law taking effect July 1, 2015, all employers in Massachusetts must allow employees to accrue and use up to 40 hours of sick time per calendar year.
  • Under this new law, employees will earn one hour of sick time for every 30 hours worked. Accrual will begin on July 1, 2015 (or the employee's hire date if the employee is hired later). Employees must be permitted to use sick time beginning 90 days after hire.
  • In addition, employees must be allowed to carry over up to 40 hours of unused sick time to the next calendar year. However, employers may limit employees from using more than 40 hours in a given year.
  • A report has been created for you to see the balances, if the probationary period has been met and if they are eligible for Sick pay.

    MA Sick Pay report.zip

  • This report is looking specifically at two pay ids. MA SICK(Accrual Pay) and MA SICK PD(Other Pay).

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.

You can accrue sick units based on hours worked. See How do I create a formula in Sage 300 Construction and Real Estate?

  1. Create a TOTAL HOURS formula that contains the following fields and parameters:

    Regular Hours [PR Check] + Overtime Hours [PR Check]
  2. Create the SICK ACCR formula that contains the following fields and parameters:

    TOTAL HOURS [Public Formula]/30
    Note: To accrue 1 hour of sick time for every 30 hours worked, the basis is the TOTAL HOURS formula, the rate is 1/30th of an hour per hour worked. If an employee works 15 hours, they accrue .5 hours of sick time. If they work 30 hours, they accrue 1 hour. If they work 60 hours, they accrue 2 hours. If the employee works 10 hours 1 week, 10 hours the next week, and 10 hours the third week the total they will have accrued a total of 1 hour for the 30 hours worked.

Set up a new Pay ID for the accrued sick time:

  1. From the Payroll Setup menu, select Pays.
  2. Enter the Pay ID "MA SICK" and a Description.
  3. From the Pay Type list, select Accrual.
  4. Select the Retain YTD Totals at close year check box.
  5. Select the Units check box.
  6. Clear all check boxes in the Distribute To box.
  7. Select Formula from the Calculation method list.
  8. In the Formula field, select SICK ACCR.
  9. Click Save, then Close.

Set up the MA SICK PD pay which will be used to pay the employees when they take sick pay:

  1. From the Payroll Setup menu, select Pays.
  2. Enter the Pay ID MA SICK PD and a Description.
  3. From the Pay Type list, select Other.
    Note: To have the sick pay automatically pay the employee based on their regular pay rate, see How do I set up an Other pay that retrieves a rate of pay? 
  4. Select the Retain YTD Totals at close year check box.
  5. Select the applicable check boxes in the Distribute To box.

To add the Sick Balance to the Check stub, create the following formula and add it to the check stub. For more information. See How can I add employee vacation/sick pay balances to my Payroll check stubs? 

SICK HRS BALANCE:

Lookup (YTD Units [PR Employee Pay], Employee [PR Check], 5, "MA SICK") - Lookup (YTD Units [PR Employee Pay], Employee [PR Check], 3, "MA SICK PD")

For more information on how to add the formula to the Check stub, see How do I add totals for pay, deductions, taxes and fringes to Payroll check stub and direct deposit notifications?