This post will discuss the new Rollover settings in the Sick Pay Plan Setup. Part 1 discussed the new layout to the setup window. These changes will be available when you have installed the 2019 Year End Update.
Plan Year Settings
The new Rollover On Settings appear on the Plan Year Settings tab.
Rollover On Setting
The Rollover On setting allows you to chose at which point the plan year rolls over.
The options are Rollover On: Starting or Ending Pay Period Date, or Check Date.
The software previously based the Rollover on the Starting Pay Period Date, so current users do not need to change this setting to continue functioning as usual.
If you choose to rollover based on the Check Date, you will then need to select your default Day of Week that Checks are normally dated.
Here are examples of how the rollover date would affect when the Employee Plan Year changes:
A Farm Labor Contractor uses a Fixed Anniversary Date of January 1, and dates checks for Thursday.
On a Starting Pay Period date rollover, the software would not rollover the Sick Pay Anniversary Year from 01/01/19 to 01/01/20 until the pay period of 01/06/20 – 01/12/20, the first pay period starting date on/after 01/01. The employee would see this updated on their check dated 01/16/20.
With an Ending Pay Period rollover method, the Sick Pay would rollover the pay period of 12/30/19 – 01/05/20, when the ending date is first on/after 01/01. The employee would see this updated on their check dated 01/09/20.
With a Check Date method and the Check Day of Week set to Thursday, the program would calculate that the Pay Period of 12/23/19 – 12/29/19 will be on a check dated 01/02/20 and perform the rollover. The employee would see the changes on that check.
What Does the Rollover Do?
Depending on the type of plan you have implemented, a plan year rollover will do the following:
The Current Year Sick Pay Paid is zeroed out.
Accrual – The current sick pay balance is carried over to the new plan year (Prior Year Carrover). If there are any Maximum Carryover settings, those limits will apply.
Lump Sum – Available Sick Pay Balance is updated to the Current Sick Pay Plan Hours Per Year value.
Our next blog post will be
How to Change Employee Sick Pay Plan (Part 1: On Rollover Date)
If you have questions on the rollover settings, please email email@example.com before changing any settings.