If you are using the Look-Back method for sick pay hourly rate calculations and entered a new Wage Code for the Safe Harbor payments, you should double-check the setting for “Include in Regular Rate of Pay Calculations” on the Wage Type setup.
If the box is checked the software will include Safe Harbor wages into the look-back rate calculation, thus increasing the average hourly rate for any employees that request sick pay within 90 days of receiving a Safe Harbor payment.
The “Include in Regular Rate of Pay Calculation” setting should be unchecked:
If you’re not sure what method you are using for sick pay calculations, there’s no harm in changing the setting any way.