Sick Pay and Sick Pay Accrual Set-Up

As the number of states adopting mandatory paid sick leave laws continues to increase, you may find the guide below helpful in determining the best set-up of CYMA Payroll Accrual and Accrual Pay features.
Please note the examples below do not necessarily illustrate the proper use in your state or organization. It is important for all CYMA users to thoroughly research applicable state laws as it relates to Accruals and Accrual Pay.  Once you have determined all applicable regulations and have a clear idea on how you wish your CYMA system to work we can advise and assist in making changes to your system set-up.

  1. Sick Leave Accrual: Recent state laws call for minimum amounts of Sick or PTO Accrual on an annual basis.  In many cases, states have set forth minimum accrual rates, such as “1 hour earned for every 30 hours worked.”    

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Setting the “Calc Method” to “System Calculated” and further entering appropriate numbers in the “numerator” (Accrued Days Per Year) and the “denominator (Work Days Per Year) will have the desired result.

Important Note: The two fields truly do operate as a simple numerator and denominator – ignore the label of “Days Per Year”.  Enter whatever values you wish so that when the two number are divided you get the rate you want, meaning you can enter “hours earned per hours worked” or “Days Earned Per Days Worked”.  This means for example that the entries of 1 hour/30 hours is the same as 8.67 Days/260 Days – both equate to 0.03335.

Further note that you control which pay type hours are counted toward an hour worked.  This is done by adjusting settings on the “Hourly Accruals Tab” in Maintain Wage Calculations (below).  For example, if you pay for Jury Duty, you may not want Jury Duty hours to count toward accrual earned.

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  1. Waiting Period Before Taking Sick Time:  Some states allow employers to implement a grace/waiting period where Sick/PTO time is earned but the employer is not obligated to pay it out until the grace period is over.  Typically, this is 90 days.  This may be based upon the employee Start Date or some other date.  CYMA allows you to control several attributes of Accrual Pay features to assist in controlling this.  The Use Beginning Date field in the “Effective Dates” section of the Accrual Pay feature can be used to ensure that no PTO/Accrual pay occurs before a specific date. As below:

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In the example above, the employee Start Date is 6/1/17 and Paid Sick Time is allowed after 9/1/17.  Also note the ability to control the maximum amount of Sick Pay paid in any one year (see number 3, below).

  1. Sick Leave Taken Annual Maximum:  Some states allow the employer to “cap”
    the maximum amount of paid Sick/PTO time per year, based on employer size. California allows a cap of 24 hour per year while Massachusetts allows for 40 hours per year. In Arizona, the maximum hours are based on the number of employees.  If you have less than 15 you may cap at 24 hours per year, and if you have more than 15 employees then it is 40.  You can establish this maximum by entering a value into the Annual Maximum Hours field on the Accrual Pay feature. 

  2. Sick Leave Accrual Annual Maximum and Rollover Amounts:  State laws permit employers to set a maximum accrual amount of “x” hours per year (the number varies by state).  Some states also govern the rules regarding the “rollover” of unused sick time into the next year.  In order to adjust employee accrual hours for rollover purposes you will need to “Enter Adjustments” to reduce the number of hours on the employee record for affected employees. The Accrual Balance Report can be run to determine the exact number of hours needing adjustment for each employee.  You may benefit from having a custom report export the employees and hours to a spreadsheet for analysis, editing and subsequent import into the Adjustments menu.

Important Note:  CYMA Version 17 will allow “automatic Rollover processing” on an employee specific date.  In the designated pay period, the employee accrual balance will be reduced, if necessary, to comply with rollover settings, as below:
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Call CYMA at 800-292-2962 if you need any assistance configuring your accrual system.