How to set up a vacation/sick formula based on hours worked and vacation/sick hours earned

How to set up a vacation/sick formula based on hours worked and vacation/sick hours earned

Support Team Asked on December 15, 2017 in Sage.
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    Description
     
    • Setting up a user-defined formula for hourly employees based on the number of hours worked multiplied by the number of Vacation, Sick, or Paid Time Off hours (PTO) earned per hour worked.
    • How to assign salaried or select hourly employees a unique and prorated annualized number of Vacation, Sick, or PTO hours.
    • Vacation, Sick, or PTO hours formula: hours worked multiplied by a set rate or prorating vacation hours.
    • California Sick time law requires 1 hour accrued per 30 hours of time worked.
    • Oregon Sick time law requires 1 hour accrued per 30 hours of time worked.
    • How would I configure to calculate Earned Sick Time?
    • Earned Sick Time benefit set-up.
    • Employers must calculate 1 hour of Paid Sick Leave for every 30 hours the employee works.
    • How would I configure for the California Healthy Workplace Healthy Family Act of 2014?
    • How would I configure  for Massachusetts Earned Sick Time Law of 2014?
    • How would I configure for New York City Earned Sick Time Act of 2014?
    • Arizona calculated sick time July 1st
    • Arizona calculated sick time
    Disclaimer
     
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    Resolution
     

    Note: This information and formula is provided as a courtesy to those who need this type of vacation formula. Sage 50—U.S. Edition support does not assist in the setting up or troubleshooting of this or any other custom formula. This deduction method uses a simple payroll field set up in Employee Defaults that requires a calculation. It assumes a variable or flat rate for each employee’s record.

    Section I: Set up the employee payroll field

    1. Select Maintain, Default Information, and then select Employees.
    2. Select Employee Fields tab.
    3. On an available blank line, enter a new payroll field description (we are using Vacation in our example).

    Note: What you enter here will print on employee paycheck stubs in the deduction area.

    1. If you want the vacation balances to carry over from payroll year to year, you will need to select both Memo and Run fields.
    2. Select OK to close the Employee Defaults window.

    Section II: Create a formula that will calculate vacation time (based on the number of hours worked multiplied by the number of vacation hours the employee earns per hour worked)

    1. Select File, Payroll Formulas, and then select User-Maintained.
    2. The Formula ID, in this instance, is SICK_ADD2 and the Name is SICKPERCENT 17 has the format of [Name][Space][Two-digit Year Number].
    3. In the box How do you classify this formula, select Benefit.
    4. Effect on gross pay should be Either subtracts or adds to gross.
    5. Filing status should be All.
    6. The formula encloses the pay level field names in parentheses, which are used for your hourly-based employees. In this instance, we have Regular and Overtime pay levels setup in the example we are using: ANSWER=(Regular+Overtime)*EMP_SPECIAL1_NUMBER/100.

    Note: Salary pay type fields (identifiers) are not available for use in any formula, however if the employee is paid hourly, all 20 of the hourly pay type field names can be used.

    1. Click Save to save your changes.
    2. Click Close.

    Note: If you have an hour per year limit (for example, 48 hours), you could use the formula below minus the bullets. Formula will continue to calculate over the limit if the balance is carried over from year to year. To avoid it from continuing to calculate over the limit, enter beginning balances for the employee in the new year instead of carrying the balance over.

    • L=48; “Maximum hours accrued allowed for 1 year”
    • Y=YTD(SICK_Accrue)-SICK_Accrue; “YTD Hours Accrued”
    • R=L-Y; “Remaining Accrual”
    • C=(Regular+Overtime)*1/30;
    • A=If(C<R,C,R); “Accrual this check”
    • ANSWER=If(R<=0,0,A)

     

    • The Line “L=48” can be changed if the limit per year is different than 48.
    • Pay Types other than Regular and Overtime can be add to the line C=.
    • We recommend giving lump sum for salary employees but if you want to accrue change C= to the number of hours in your pay period.  For example C=40*1/30 for weekly
    • To create a pay type for sick time.
    • When doing a payroll entry you will see 3 fields for sick time (Sick_Accrue, Sick_Remain, Sick_Taken).
    • To take hours, enter the amounts of hours taken on the Sick_Taken field and the remaining fields will recalculate.
    • They would also have to enter the Sick hours in the Sick Pay Type field, these two fields do not update together.

    Section III: Set formula for employee

    1. Select Maintain, and then select Employees/Sales Reps.
    2. Highlight one of the hourly employees earning vacation hours applicable to this plan.
    3. Click Withholding Info tab.
    4. In the Additional Withholding column: Enter the number of vacation hours the employee earns per each hour worked, multiplied by 100, on the Special1 (or Special2 field, depending on the field you used in your formula on step 6 above).
    5. The number must be multiplied by 100 and then entered into the field, due to how Sage 50 rounds up numbers beyond three decimal places.
    6. Select Vacation/Sick Time tab, select the hyperlink for Current formulas, and then select SICKPERCENT formula for the total hours.
    7. Click OK.
    8. Click Save.
    9. Repeat the steps above to setup the remainder of hourly employees that are participating in the vacation plan that calculates vacation time, based on the number vacation hours earned per hour multiplied by the number of hours worked.

    Source: Sage Community forums.

    Disclaimer: Sage Accounting Solution is an independent provider of Sage Related services and is not affiliated with Sage.

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    Support Team Answered on December 15, 2017.
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