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maidsinminnesota
Level 1

How to calculate safe and sick pay mn

MN Safe and Sick  law is in effect Jan 1 to provide employees with 1 hour per every 30 hours worked , how do I set this up in my payroll system?
3 Comments 3
AileneA
QuickBooks Team

How to calculate safe and sick pay mn

Hello there. Let me explain how QuickBooks calculates the sick leave pay.
 

Minnesota's earned sick and safe time (ESST) law is set to effect on January 1, 2024. Under this law, employers with 21 or more employees must provide their workers in Minnesota with at least one hour of paid sick and safe time for every 30 hours worked. Employers with 20 or fewer employees must also provide their workers with unpaid sick and safe time. The ESST accrual can go up to at least 48 hours per year, and employees can carry over up to 80 hours of unused ESST from one year to the next. 
 

The law allows employees to use ESST for various reasons, including illness, injury, health condition, or a family member's. Employees can also use ESST for reasons related to domestic abuse, sexual assault, or stalking. 

 

Employers must provide written notice to their employees of their rights and obligations under the law, including the amount of ESST available. Employers must also maintain records documenting their compliance with the law. Both employers and employees in Minnesota need to be aware of this law and its provisions to ensure compliance and promote a safe and healthy workplace. 

 

Currently, QuickBooks Online does not have a specific feature to track earned sick and safe time for the state of Minnesota. We understand that this may concern many businesses operating in Minnesota, and we want to assure you that we are actively working to address this issue. Our compliance team constantly monitors the regulatory landscape to stay up-to-date with any changes that may impact our users. 
 

We will provide further information on this matter as soon as our team has completed their review and updates become available. In the meantime, we encourage you to keep detailed records of your employees' sick and safe time to ensure compliance with Minnesota state law. You can use the existing feature to track the employee's sick accrual. I'd be glad to share the steps with you:
 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Pay types, select Start or Edit.
  4. Scroll down to the Time off policies section. From the Paid time offUnpaid time offSick Pay, or Vacation Pay ▼ dropdown, choose Add new [time off pay] policy.
  5. Complete the on-screen fields to create your policy, then select Save.
  6. When finished, tap Save.

 

I'm adding this article for more details: Set up and track time off in payroll. Also, you can check out this article for more compliance information: Information on new taxes, state rate issues, and more!

 

In addition, if you're looking for more information about various tax-related topics such as tax forms, withholdings, unemployment, e-filing, and payment options. It's always a good idea to stay informed about tax-related matters to ensure you fulfill your obligations and make informed decisions.

 

 

Don't hesitate to reply to this post if you need further assistance with Minnesota's earned sick and safe time (ESST) law in QBO. We're always here to assist you. Have a great day!

Nancy Surdy
Level 1

How to calculate safe and sick pay mn

Has there been any update or changes made in Quickbooks Online to accomodate the MN Earned Sick and Safe Time requirements? 

I currently have an employee who has reached the maximum of 48 hours used but I see that QB is still calculating her PTO on this paycheck. Is that how it's suppose to work? 

Any help will be appreciated. 

Thank you.

MelroseV
QuickBooks Team

How to calculate safe and sick pay mn

Thank you for reaching out, Nancy. As of now, QuickBooks Online (QBO) has not released any updates or changes related to Minnesota's earned sick and safe time requirements.

 

According to Minnesota regulations, employees can earn one hour of sick and safe time for every 30 hours worked. They can accumulate up to 48 hours per year and can carry over up to 80 hours of unused time from one year to the next.

 

The reason your PTO is still being calculated in QBO is that the Maximum allowed was not entered when you created your Paid Time Off policy. To resolve this, we can edit the policy and enter the maximum amount. Allow me to walk you through the steps.

 

  1. Go to Payroll, then click Employees.
  2. Choose your employee.
  3. From Pay types, select Edit.
  4. Scroll down to the Time off pay policies.
  5. Click the pencil icon beside the Paid time off box.
  6. Enter an amount in the Maximum allowed.
  7. Select Save.

 

Additionally, I'll include this resource to provide a detailed view of your financial information. You can use it to access a list of payroll reports and transactions for your employees: Run payroll reports.

 

Don't hesitate to return to this platform if you encounter challenges while editing your policy in QuickBooks Online. We're committed to addressing all inquiries and ensuring your QuickBooks experience is smooth and efficient.

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