Set sick maximum accrual limits
There are 2 ways to set the max accrual limits for sick pay in QuickBooks Desktop.
Maximum hours at a time
The total hours' someone can save up at once. They'll accrue hours as long as their balance is below the maximum. Employees can gain more than the maximum in a single year if they use some sick time.
- Example:. You set your maximum number of hours to 40. Maria accrues 40 hours by August and uses 10 hours in October. She'll add more sick time on her next paycheck even though the new year hasn’t started.
Maximum hours for the year
The total hours someone can save in one year. Once they reach this maximum, they won't accrue anymore until the next year.
- Example: Let's say you set your maximum number of hours to 40. Joe accrues 40 hours by August and uses 10 hours in October. He won't accrue any more sick time until the new year starts.
Reset hour each new year
If you choose this option, any hours your employee earned will reset. To carry forward any balances to the next year, enter the hours in Maximum hours to carry over.
- Example: If an employee has 12 hours of sick time remaining at year-end and you set the maximum hours to carryover at 10 hours, only 10 hours will continue to be available for the employee’s use. The other 2 hours will be lost.
To learn how to set up sick and vacation time in your QuickBooks, see Set up and track time off in payroll.