STEP 2 – Set up Pay Codes in Dynamics GP which will be used to pay the employees for the special paid sick leave.
See additional notes regarding taxation in the GP Technical Update below.
Each Employee will have two new Pay Codes for the Paid Sick Leave:
- for Sick time if they themselves are sick and
- for Sick time used to care for a family member who is sick.
The settings below are recommended based on DOL guidance for establishing upper dollar limits on per-day usage.
- Pay Code for Sick Leave to care for yourself
- Pay Type is Sick
- Equal to the Employees Regular Rate of Pay
- Maximum of $63.87/hour (Daily max of $511 / 8 hours per day)
- Pay Code for Sick Leave to care for a family member
- Pay Type is also Sick
- Equal to 2/3 of employee’s regular rate of pay
- Maximum of $25/hour (Daily max of $200 / 8 hours per day)
For sake of this demonstration, we are using CVSELF and CVFAM as the pay codes to represent the sick leave for self, versus the sick leave for caring for family. They are of type “HOURLY” and are linked to the hourly code “HOUR4”. This prevents the special leave from affecting existing sick time, which would happen if you tried to use a pay type of “SICK”. The pay code link method avoids this problem and allows for the ratio needed for the self and family leave (100% and 67% respectively).
NOTE: THIS METHOD REQUIRES THE MICROSOFT HUMAN RESOURCES AND PAYROLL EXTENDED PACK. If you do not have this, see Addendum B for alternate method using Overtime Codes and contact your Partner for more information about the HR & Payroll Extended Pack.