Thanks for joining in this thread, Luckycentury.

I can share some information about sick leave hours that was not used. Let's get you set up in QuickBooks Desktop.

Right now, setting up a rule to roll over the 40 hours that was not used is not available in QuickBooks Desktop. For now, as a workaround, you can add the 40 hours to the employee's accruals.

Let me show you how:

1. Select Employees > Employee Center. Double-click the employee's name.
2. Select Payroll Info then selects Sick/Vacation.
3. In the Hours available as of mm/dd/yyyy field, enter the number of paid sick hours that are currently available for the employee to use.
   Note: This is the hours/dollars available as of today regardless of the date field. The date field defaults to the employee's hire date in QuickBooks Desktop. (After you have started paying the employee, the Hours Available as of date will update to the pay period end date of the employee's most recent paycheck.)
4. Select the Accrual period drop-down menu and choose one of the accrual periods for sick time. There are 3 different ways to accrue sick and vacation in QuickBooks Desktop:
   • Beginning of Year - Grant a certain number of hours that the employee can accrue over a year.
   • Every Paycheck - Accrue a certain number of hours per paycheck.
   • Every Hour on Paycheck - Accrue hours on every paycheck.
5. In the Hours Accrued field, enter the number of hours that will be accrued (based on your selection in step 4). For example, you give 80 hours of vacation per year and it is accrued biweekly. You would enter 3.08 hours (80 hours/26 pay periods = 3.08 hours).
6. (Optional) In the Maximum number of hours field, enter the maximum balance of sick hours that the employee can have.
7. If you want sick hours to reset to zero when a new accrual year begins, select Reset hours each new year?.
8. Enter the start date of year the accrual year.
   • If the employee accrues sick time on a calendar year, enter January 1.
   • If the employee accrues sick time on a different schedule, for example, an anniversary year, enter the day that year begins.
9. Enter the date that sick time should begin accruing. To specify accrual information for vacation hours, repeat steps 4 through 10 for the Vacation section of the window.
10. Select OK to record your changes.

This article is a great reference: https://community.intuit.com/articles/1763467-set-up-and-pay-sick-and-vacation-time.

Keep me posted if you have more questions about the sick and vacation leave in QuickBooks Desktop. I'll be more than willing to lend you a hand. Have a nice day!