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HR and Payroll for Dynamics GP

HR and Payroll for Dynamics GP

Overview of Mandatory Sick Leave Setups in Comprehensive Leave Manager

KB01-022

Several mandatory sick leave policies are designed to give the employee 1 hour of vacation time for every certain number of hours worked. Although employers can exceed this, they cannot provide less. If you want to exceed this requirement or, your state law enables other types of accruals, there may be other setup options that would work better for you. Most mandatory sick leave laws require the employer provide 1 hour of accrued vacation time for every 30 hours worked; thus, our example will focus on earning 1 hour for every 30 hours worked.

The accrual schedule can be setup to use Every X hours/Calendar Year or Every X hours/Accrual year to determine the accrual. The accrual year can be either Hire, Adjusted Hire or Other date.  The system will use the Accrual Based on Date to determine the year.  We define X as 30 hours in the To Range. When using Every X hours/Calendar Year the Calculation Factor is now how many hours should I earn when I reach the To range amount. We defined this as 1 hour.

We have setup a Calendar year maximum of 24. You could use an Accrual year (Per Year – Variable) for the maximum as well. This maximum is different from an anytime maximum. The system will stop the accrual once the employee meets this maximum. In our example, if an employee met the accrual maximum of 24 hours in October the system would not accrue again until January, because we used a calendar year maximum in the setup.

Calendar Year Example

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Accrual Year Example

accrual schedule

Now that we have the accrual schedule setup, we can begin the Leave Code Setup. When picking the Leave Code name, keep in mind this name can be displayed on the check. The Leave Type is Accrual. We can assign the Accrual Schedule we created above to this leave code.

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Accrual Based On can be hire date, adjusted hire date, other date or seniority date. If you use Every X hours/Accrual year and/or a maximum of per year-variable on the accrual schedule, the system will use the Accrual Based On date to determine a year. You can change this setting for specific employees at the Employee Leave Maintenance window. You could setup all existing employees with an accrual based on date of other and 7/1. Then, new hire employees can be set to adjusted hire date and the year would be defined from a hire date. This field does affect the years of service calculation on the Employee Leave Maintenance window. If you use Hire or Adjusted Hire date, the system will use the dates assigned at the Employee Leave Maintenance window.

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The Effective Date is very important for this leave setup especially for existing employees with payroll history. The system looks at payroll history to determine hours from last week that should be included this week in the calculation. It determines which payroll to use by looking at transaction for a certain check date. You want to set the system to one day after the last check date when implementing. Let’s look at a few examples to determine the best date to set the effective date.

Employee hours and pay period information.

Hours worked Pay Period Start Pay Period End Check Date
38.05 24-Jun 30-Jun 4-Jul
28.75 1-Jul 7-Jul 11-Jul
15.6 8-Jul 14-Jul 18-Jul
45.01 15-Jul 21-Jul 25-Jul

If the effective date was 7/1/2015 for the leave code, the first check run with the product is for July 11thcheck date, the system would include the 38.05 hours from week 1 in the calculation. The system calculates the hours over the 30 hour increments. The 8.05 hours from last week are the hours that should be applied to this weeks calculation. For the July 11th payroll the system will calculate 8.05+28.75 = 36.8 hours. Since the Employee worked 30 hours, the system will accrue 1 hour of sick time.

When we process the July 18 check the system would look at 38.05+28.75 = 66.80. Then use the 6.80 hours over the 30 hour increment to give us 15.60+6.80 = 22.4. Thus, the employee does not accrue sick time on this check.

When we process the July 25 check the system would look at 38.05+28.75+15.6=  82.4. Then use the 22.4 hours over the 30 hour increment to give us 22.40+45.01 = 67.41 total hours for accrual. The system would accrue 2 hours of leave time this pay period.

You might notice we have worked a total of 127.41 hours but have only accrued 3 hours not 4 hours. Since the first check was already processed when we started using Comprehensive Leave Manager, you would have needed to import the first 1 hour accrual or used the Calculate Leave Accruals window to accrue that first hour from the payroll which was already posted.

Maybe you do not want to include the 38.05 hours from the July 4th check when you implement Comprehensive Leave Manager. You want to start accruing on the July 11 check for hours worked July 1 – July 7. In that situation, you want to use an effective date of July 5.  Then, when you run the July 11 check, the system will not look at any hours prior to July 5.

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We can assign a waiting period to let the system determine if the accrued time would be pending or available. If an employee is within their probationary period, the system will enter the time in a pending status. In our example, we will use 30 days, we will discuss this further on the Employee Leave Maintenance window below.