Example: set up the Occupational Sick submodule

The following example illustrates the typical steps you have to take to use Occupational Sick to automatically adjust employee pay. You should refer to this example of how to use the system only when you have read the help topics for Occupational Sick.

This example assumes you have a fully functioning payroll system in which the payroll definitions, payroll codes and employee records are set up.

It illustrates the following situation:

  • You have to adjust employee pay to take account of occupational sickness payments, and replace an employee’s salary with occupational sick pay, when appropriate. Salaries and other payments must be prorated based on calendar days.
  • You want to suspend any payments for performing first aid duties when employees trained as first aiders are off sick.
  • Your organization’s occupational sick scheme has the following allowances: six months at full pay and six months at half pay, for all employees. People qualify for the scheme one year after their service start date.
  • You want the system to consider employee sickness absence over a “rolling” period of one year, with a 60-day linking period between absences.
  • You want the system to assume that sickness payments should be made after the 24th of the month, which is your payroll cut-off date.

To use the system to meet the requirements listed above, you perform the following steps.

Step 1: Set up the payroll definitions for Occupational Sickness

Specify the sickness codes you use when you register employees’ sickness absence, and the date from which the system should assume sickness until the end of the pay period (your payroll cut-off date).

A. Click Payroll > Module Setup > Module Definitions. On the Sickness tab, type your sickness codes in Automated Sick Pay – Valid Absence Codes . Separate each code with a space.

B. Type 24 in End Day Number OR Period End (0).

Step 2: Set up the payroll codes for Occupational Sickness

In this step, you update the definitions of the payroll codes for basic salary and first aid. You also create the occupational sick payroll codes for six months at full pay and six months at half pay.

A. Click Payroll > Module Setup > Payment/Deduction.

B. Update the definition for the employee’s basic salary. Select the payroll code used for employees’ salary, click Edit to update its details, and then click the Controls tab.

C. Under Occupational Sick Pay, select Replace and under React to Critical Dates, select Calendar Days.

D. Select the first aid payroll code, click the Controls tab, and select Suspend in in Occupational Sick Method, as follows.

E. Create the payroll codes for occupational sick pay at full pay, and occupational sick pay at half pay.

F. Click New and enter the details on the General tab.

G. Enter the settings on the Controls tab.

H. On the Calculation tab, you can define the occupational sick pay equivalent of the calculated monthly salary.

I. Save the details and repeat these steps for the occupational sick pay at half pay payroll code. For this, the Calculation tab would use a value of 24 in Divide By.

Step 3: Set up the occupational sickness schemes

Click Occupational sick>Module definitions>Occupational Sick & Child Care Scheme

A. Enter the details for the scheme and click Save:

Note that the default period for a rolling allowance type is 365 days.

B. On the Progression tab, in Payroll Code, select the employee payroll code that is replaced.

C. In Replace With,  select the Occupational Sick Pay – Full code.

D. In Duration, type 182 calendar days as the allowance period.

C. Click Save, and then enter the details for Occupational Sick Pay – Half payroll code and save the details.

Step 4: Set the scheme order

You set the scheme order by selecting Occupational Sick > Module Definitions > Priority. In this example, this step is not necessary, because only one scheme is defined. However, ifyou had more than one scheme, you would set the order for the schemes, by listing the highest first, in descending order.

Step 5: Set up the absence records for employees who are off sick

For employees who become sick, create the absence entry on the HR record for the employee. Select the HR record for each employee, and then select Personal > Absence Entries, and then record the sickness dates.

Step 6: Run the payroll calculation and examine the working file

For employees who qualify for the scheme and who were off sick during the pay period, the working file should show the transactions for both basic pay and occupational sick pay. Examine the working file for an employee and check that an appropriate occupational sickness payment is recorded.

Note that there is a zero entry for basic salary, which does not appear on the payslip. This is the original entry for basic salary that is superseded by the occupational sick pay and the basic salary payment entries.