In QuickBooks Desktop 2019, sick and holiday time accruals, balances, and shortfalls are displayed on the employee payslips for greater visibility. This also serves as better compliance with the mandated maximum accrual rates.
With QuickBooks Desktop 2019 R3 and later, you'll also be able to set a maximum for carryover sick pay.
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Set sick maximum accrual limits
There are 2 ways to set the max accrual limits for sick pay in QuickBooks Desktop.
Maximum number of hours
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 payroll payment even though the new year hasn’t started.
Hours accrued at the beginning of 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.
Set sick and holiday time
This is in compliance with regulation.
- Go to the Edit menu, then select Preferences.
- Select Payroll and Employees, then go to the Company Preferences.
- Select Employee Defaults, then select Sick & Holiday.
- Under Accrual period, select the appropriate option for you:
- Hours accrued at the beginning of year: The total hours someone can save in one year.
- Maximum number of hours: The total hours someone can save up at once.
Note: Establishing the preference applies only to new hires going forward. You will have to go into each existing employee and set the Maximum hours to carry over for them individually.