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

 
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Best answer 12-10-2018

Accepted Solutions
QuickBooks Team

Hi there, bwalter, Let me help you in setting up sick lea...

Hi there, bwalter,

Let me help you in setting up sick leave accruals for the new Washington paid sick leave law.

To do that:

  1. Click Employees on the menu bar at the top> Employee Center.
  2. Double-click the employees name to edit information.
  3. Select Payroll Info tab, then click Sick/Vacation... tab.
  4. Under Accrual period, select Every hour on paycheck.
  5. Enter 0.025 for decimal setup (or 1:30 for minutes setup) on Hours accrued at beginning of year.
  6. Enter 40 on maximum of hours.
  7. Enter 01/01/2018 as a date on Begin accruing sick time on.
  8. You can enter other information needed.
  9. Click OK to save changes.

Please let me know how it goes by leaving a comment below, I'll be here if you need further assistance. Have great day bwalter!

View solution in original post

16 Comments
Level 1

how do you know whether to use decimal or minutes setup?...

how do you know whether to use decimal or minutes setup? Where do these numbers come from? How were they calculated?
Thanks
QuickBooks Team

Hi there, bwalter, Let me help you in setting up sick lea...

Hi there, bwalter,

Let me help you in setting up sick leave accruals for the new Washington paid sick leave law.

To do that:

  1. Click Employees on the menu bar at the top> Employee Center.
  2. Double-click the employees name to edit information.
  3. Select Payroll Info tab, then click Sick/Vacation... tab.
  4. Under Accrual period, select Every hour on paycheck.
  5. Enter 0.025 for decimal setup (or 1:30 for minutes setup) on Hours accrued at beginning of year.
  6. Enter 40 on maximum of hours.
  7. Enter 01/01/2018 as a date on Begin accruing sick time on.
  8. You can enter other information needed.
  9. Click OK to save changes.

Please let me know how it goes by leaving a comment below, I'll be here if you need further assistance. Have great day bwalter!

View solution in original post

Level 1

As the setup for Sick/Vacation says "every hour on payche...

As the setup for Sick/Vacation says "every hour on paycheck" does the payroll system know not to credit sick leave for vacation or sick leave used?  Also, the 40 for maximum  hours is incorrect.  An employee in Washington does not have a cap on hours earned in a year.  The carryover is a minimum of 40 unused hours but an Employer can elect to allow their employees to carryover all of their unused sick leave.
Level 1

To ensure sick leave hours are not accrued on sick/vacati...

To ensure sick leave hours are not accrued on sick/vacation time paid:  Edit, Preferences, Payroll & Employees, Company Preferences, Check 'sick & vacation hours paid.' I agree on the 40 hours for maximum, that is not correct for WA state. I have not figured out how to carry over the minimum of 40 hours, could use help with that.
Level 1

To ensure sick leave hours are not accrued on sick/vacati...

To ensure sick leave hours are not accrued on sick/vacation time paid: Edit, Preferences, Payroll & Employees, Company Preferences, Check 'sick & vacation hours paid.' I agree on the 40 hours for maximum, that is not correct for WA state. I have not figured out how to carry over the minimum of 40 hours, could use help with that.
Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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?

QuickBooks Team

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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. 

Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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

Please help - thanks

 

Anonymous
Not applicable

Re: Hi there, bwalter, Let me help you in setting up sick lea...

Hi there, @CMLRI.

 

Thank you for joining on this thread. I'd be glad to help set up your Rhode Island sick leave. Fist, let's set up your time format in the preferences to Minutes.

 

Here's how:

 

  1. Go to Edit menu and select Preferences.
  2. Select General on the right side panel then click the Company Preferences tab.
  3. Make sure to click the radio button for Minutes on the Time Format.
  4. Click OK when done.

 

 

Here's how to set up your sick leave:

 

  1. Go to the Employees menu and click the Employee Center.
  2. Double-click the name of the employee on the Employees folder.
  3. Click the Payroll Info tab on the right side.
  4. Select the Sick/Vacation tab.
  5. Fill in the details for hours available and hours used on the Sick information.
  6. Click the drop-down arrow for Accrual period and select Every hour on paycheck.
  7. Enter .02857 on the Hours accrued per hour paid (1hr/35 hrs). This will convert automatically to 1.43 hr.
  8. Click OK after filling in the other details.

 

 

That should do it. As always you can contact our Desktop Payroll Support if ever you need assistance in going through with the steps. 

 

Let me know if you have other questions about the RI sick leave setup. I'm always here to help.

 

 

 

 

Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

Hi there BWalter,

Do I set up Vacation the same way?

 

Thank you, Tina

Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

Hello,

 

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

 

Thank you for your help.

 

Tina

QuickBooks Team

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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.

Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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

Moderator

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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!

Level 1

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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. 

 

QuickBooks Team

Re: Hi there, bwalter, Let me help you in setting up sick lea...

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. 

 

EveryHourOnPaycheck.PNG

 

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. 

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