How do I set up a sick leave rate?
A sick leave rate refers to the rate at which employees accrue or earn sick leave, also known as sick pay or sick time off. The sick leave rate is typically determined by company policy, employment contracts, or collective bargaining agreements.
The sick leave rate specifies how many hours of sick leave an employee earns for each hour worked or based on their length of service with the company. For example, a sick leave rate of 1 hour for every 30 hours worked means that an employee earns 1 hour of sick leave for every 30 hours worked.
Employers offer sick leave as a benefit to employees to provide them with paid time off to recover from illness or injury or to attend to medical appointments. Sick leave rates and policies can vary depending on the employer and industry practices.
Example: Sick leave rate - Fixed hours
In this example, sick leave accumulates at the rate of 5.7700 hours per pay period. At the end of the fiscal year, if the the sick leave balance exceeds the accumulation limit, the sick leave balance will be adjusted down to the accumulation limit. The employee will lose the additional sick leave hours.
In this organization, there is only one leave level for sick leave - fixed hours. The leave rate calculates based on the length of service. It calculates 5.7700 hours of sick leave every pay period. The employee is allowed to carryover up to 360 hours in to the next payroll year.
Example: Sick leave rate - Percentage
This is an example of a sick leave rate that accumulates a percentage based on the employee's anniversary date. It uses the hours from the pay codes you have selected to calculate the percentage.
In this organization, there is only one leave level for sick leave - percentage. It is set up to calculate sick leave at the rate of 7.2200%. The employee can accumulate up to 420 hours of sick leave. At the end of the year, the employee can carryover up to 360 hours of sick leave to the new year.
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