How do I set up sick leave accurals for the new WA State sick leave law? 1 hour earned for every 40 hours worked.

Hi - I have set this up as instructed but the 1 hour for every 30 hours worked is not showing up correctly - when I add all the hours worked and divide by 30 it is more than is showing up in QB?

Thanks for joining us here, Hayjuls.

QuickBooks will accrue an hour per 40 hours worked as long as the setups are correct. Make sure that the format is set to Minutes since you're following the Every hour on paycheck option. Here's how:

1. Go to the Edit menu, then click Preferences.
2. Click General, then select Company Preferences.
3. Select Minutes in the TIME FORMAT section.
4. Click OK.

I would also suggest contacting our Payroll Support Team so they can review the sick time setup with you. Here's how: 

1. Open this link: https://payroll.intuit.com/support/contact/?infosrc=qs&service=16. 
2. Select Basic, Standard, and Enhanced. 
3. Click Payroll, then click View Contact Info. 

Visit us again in the Community if you have other questions. See you around. 

How is this caluclated?  I need to set up for RI sick leave which is 1 hour for every 35 paid.

Please help - thanks

Hi there BWalter,

Do I set up Vacation the same way?

Thank you, Tina

Hello,

To set up Vacation accruals, is the process the same as for setting up Sick Leave?

Thank you for your help.

Tina

Thank you for joining the thread, Tina.

Yes, you can do the same way to set up vacation accruals. And I'd be happy to walk you through the steps.

To set up vacation leave, here's how:

1. Click Employees at the top menu bar and select Employee Center.
2. Double click the employee's name.
3. Go to the Payroll Info tab.
4. Click the Sick/Vacation button in the upper right side part of the page.
5. In the Vacation section, select Every hour on paycheck for Accrual period.
6. In the Hours Accrued per hour paid field, enter the hours.
7. Fill out the other details, then click OK to save the changes.

Here's an article you can read on for your reference: Sick Pay Maximums.

That's it! Fill me in if you have further questions. I'll be around if you need any help.

How do you set up the rule to roll over the 40.0 hours per maximum that is not used? 

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!

I am having an issue with the set up for Washington sick leave. QuickBooks is including holiday hours worked in the accrual of sick leave and I cannot see where I can edit this. 

Hello there, @MFBCPA, 

Let's make sure the Every Hour on Paycheck is selected on the Accrual period when setting up sick accruals. This way, it won't include the holiday hours worked. You can perform the steps above provided by RoseMarjorieA above and see the screenshot below for the 4th step. 

For detailed steps, see this article: Set Up and Pay Sick and Vacation Time. 

However, if you're trying to set up the Washington's Labor and Industries ((WA L&I) tax, this is based on hours worked, not the holiday hours. It could be the pay type was set up as regular pay, which is why the holiday hours are included.

To help fix this, you'll need to create a new payroll item for the holiday hours. Then, make sure the pay type is either vacation or sick so it'll be excluded. I'll guide you through the steps. 

1. Go to the Lists at the top menu.
2. Select Payroll Item List.
3. In the Payroll Item drop-down at the bottom, click New. 
4. On the Select setup method section, choose Custom Setup and Next. 
5. On the Payroll item type, select Wage and Next. 
6. Pick Hourly Wages, then Next again.
7. Choose Sick or Vacation Pay and tick Next. 
8. Enter a slightly different name, such as Holiday hours, then click Next.
9. Choose an expense account and hit Finish.

To learn more about this tax, go through this article: Set Up a Payroll Item for Washington's Labor and Industries (L&I) Tax. 

Once done, you can run payroll again. This is to ensure the holiday hours won't be included on the paychecks. Here are the steps:

1. Go to the Employees at the top menu.
2. Select Payroll Center.
3. Click Resume Scheduled Payroll or Start Unscheduled Payroll.
4. If the employee's name is highlighted in yellow, right-click the name and hit Revert Paycheck. 
5. Select an employee, then choose the Open Paycheck Detail option.
6. Choose the Holiday hours that you just created, then enter the hours. The WA State L&I should be zero. 
7. Click Save & Close.

I'm here anytime you have other concerns. Have a great day. 

Can't follow these instructions.  They seem written for Qb Desktop not Online.  this thread is for QbO... Please add these steps for QbO.

Thanks for joining in on the thread, HandiChickNW.

The steps provided on this thread is for QuickBooks Desktop. I'll share the ones for QuickBooks Online. Here's how to do it:

1. Click the Gear icon in the upper-right corner and select Payroll settings.
2. Under the Taxes section, click the State Taxes - WA hyperlink.
3. Scroll-down to the Paid Family Medical and Leave Premium ER item.
4. Select the correct rates for the item and save the changes.

You can use this link for reference: Set up your Washington Paid Family and Medical Leave insurance premiums.

Then, you can set up the employee for the sick or vacation pay and run payroll.

Let us know if you need additional assistance with this. Have a great day!

My employees are on commission.  How do I set up Washington sick pay to track their hours?

How do you set it up for employees on commission.  I had one accountant say I needed to creat a memo line to track the hours.  

Hello, Gylhans.

I'll share the steps on how you can track the sick pay hours for your commission employees. 

In QuickBooks Online Payroll, we can only set up sick pay for Hourly and Salaried employees. One way to do it for Commission-only employees is to set up a new pay item, then track the hours on the memo. Here's how:

Setting up a new pay item:

1. Go to Payroll, then click the Employees tab.
2. Choose an employee, then click the pencil icon beside Pay. 
3. Click the Pencil icon again under Section 4.
4. Expand the Even more ways to pay section.
5. Check Other earnings, then rename it to something like "Sick Pay."
6. Click Done. 

You'll use this to pay your commission-only employees. 

Manually tracking the hours on a memo or paying their sick pay:

1. On the Employees page, click the Run payroll.
2. Select your pay schedule, then hit Continue.
3. Enter the commission payment. Under Total Pay, click the Pencil icon.
4. Type the hours manually in the Memo box.
5. Click OK, then proceed with the payroll.

Though if you're using QuickBooks Desktop Payroll, you can definitely do this easily. Follow the steps for QuickBooks Desktop Payroll in this article: Set up and track time off in payroll.

Need help managing your commission employees' payroll data? You can check out the articles in the general help page. They can also tell you how to build payroll reports so you can see a detailed or summary view of their year-to-date amounts. 

If you're using a different payroll platform, just select another product under Topics for. 

Happy to help out again if you need to accomplish other tasks in QuickBooks. Just say the word and I'll get back to you as soon as possible. 

James,

The option for "Even More Ways to Pay" does not show up in my pay types. Any idea how I can make this work?

Kai

Hello there, Kai.

I got you covered in setting up an employee on commission in QuickBooks.

The steps that were shared by my peer jamespaul above works for QuickBooks Online. If you're using QuickBooks Desktop, I'll guide you on how to perform the process.

You'll need to set a commission item and add it to your employees' records afterward. This way, the item will be used upon pay your employee.

To set up a commission item:

1. Click on List at the top and choose Payroll Item Lists.
2. At the bottom left of the Payroll Item List, click the Payroll Item dropdown button, and choose New.
3. Select Custom Setup and click Next.
4. In Payroll item type choose Wage. Click Next.
5. From the Wages list, choose Commission. Click Next.
6. Enter the Item Name which prints on payroll checks and reports. Click Next.
7. Enter an Expense Account.  Click Next.
8. If you want to set a rate, in the Default Rate window, enter an amount or percentage to calculate this commission. To enter a percentage, type a percent sign (%) after the number. You can change this figure whenever you use the commission item.
9. Select Finish.

Once done, add the item to your employees record:

1. From the QuickBooks Desktop menus at the top, click Employees then Employee Center.
2. Double-click on the employee's name.
3. Click the Payroll Info tab.
4. Add the item under Earnings by clicking in the white box under item name and choosing the item from the drop-down list.
5. Enter the rate in the rate column.

To learn more about this process together with viewing reports with commission items, you can always refer to this article: Set up commission payroll item and reports.

However, if you're using QuickBooks Online, you can select Commission Only as the salary type of the employee. 

Here's how:

1. Go to the  Payroll menu, then select Employees.
2. Select the employee's name.
3. Select the edit ✎ icon next to Pay.
4. In the How much do you pay employee section, select the small arrow ▼ icon and choose Commission Only.
5. Select Done.

For complete details about managing commissions for your employees, check out this reference: Learn how to set up and pay commission to an employee.

Let me know on how things turn out. I'll be right here to provide further assistance if you need anything else. Have a good one!

How do I set up payroll item to the deduct from sick pay when hours are used