How do I pay an employee using their sick pay hours?

Hello there, CanelaSF.

I'm here to provide information on how you can pay your employees using sick pay hours.
 

Here's how: 
 

1. Go to the Payroll menu, then click Employees.
2. Select the employee’s name, then select Edit in the Pay section.
3. In the How much do you pay [employee]? section, select Edit.
4. Select Paid time off, Unpaid time off, Sick Pay, Vacation Pay, or Holiday Pay.
5. Enter hours per year and Maximum allowed hours (optional), then select OK and then Done.

Once done, you can add sick pay to your employee's paycheck. Here's how: 

1. Go to Payday.
2. Choose the Check Type ▼ drop-down and click Regular Checks.
3. Hit the Pay Period ▼ drop-down and tap the pay period.
4. Select the employees you need to pay. Find your employee and add their sick pay or vacation pay hours.
5. Tap Create Paychecks.
6. Choose Approve Paychecks. Review the payroll details. If everything looks good, select Continue.

For more tips about adding additional pay types in QuickBooks Online, please see this reference: Set up and track time off in payroll.

Additionally, I've added this article on how to remove outdated sick pay in QuickBooks Online (QBO): Delete an obsolete vacation or sick pay policy

Feel free to stay in touch with me if there’s anything else you need or questions about sick leave accruals in QBO. I'd be happy to help.

This does NOT work in Quickbooks Online Payroll. Even after setting up and selecting Sick Leave policy, there is NO hourly sick pay option showing up when running payroll. I need to pay out from the ACCRUED hours, so that when my employee has 24 hours of sick pay accrued and I'm paying for 20, the paycheck has the correct amount of hours left on it (4) instead of saying they have 24 hours left and have used 0. I need to pay out the SICK HOURS that are accruing, not lump them into regular hours and have extra sick pay accrued on those sick hours. This needs to be fixed!!!

Hello there, @awholenoobworld.

I see that you've posted your concern twice. If you haven't been notified of the new response, check it out here.

Also, to further guide you in managing your employees' benefits using QuickBooks Online Payroll, I would encourage you to check out one of our Help pages: Support for Common Payroll topics.

If you need further assistance with your payroll account and transactions, don't hesitate to leave a comment below. I'm always here to help. Take care, @awholenoobworld.