As the setup for Sick/Vacation says "every hour on paycheck" does the payroll system know not to credit sick leave for vacation or sick leave used?  Also, the 40 for maximum  hours is incorrect.  An employee in Washington does not have a cap on hours earned in a year.  The carryover is a minimum of 40 unused hours but an Employer can elect to allow their employees to carryover all of their unused sick leave.