Michigan Legistlature changing the paid leave for employees starting Feb 2025

Hi there, EMM016.

Thank you sincerely for bringing the information about minimum wage changes to our attention. Your diligence is greatly appreciated.

I want to assure you that our payroll compliance team is vigilant in monitoring and implementing any changes to Michigan state regulations affecting employees. Rest assured that if any updates occur, we will promptly adjust our programs accordingly. Furthermore, we commit to notifying you immediately of any such changes.

Should you need any further assistance or have additional questions, please don't hesitate to reach out. I'm here to help and just a click away. Simply hit the Reply button below, and I'll be more than happy to assist you further.

Will this come in an update as we are a small business and have never had to pay sick leave?  Can you give us the steps to set this up for Michigan?

Will Quickbooks be setting this up via a payroll update?  Can you give us the steps to set this up?

We are using Quickbooks Enterprise Desktop.  Can you add the steps for this?  Thank you.

I've got the steps to help you seamlessly set up QuickBooks Payroll in accordance with the Michigan Earned Sick Time Act, Paul. Let's ensure full compliance and smooth operation in your system.

Starting February 21, 2025, Michigan will update the Paid Family Leave Act by enacting the Michigan Earned Sick Time Act (ESTA). The new ESTA will apply to all Michigan employers, regardless of size, as long as they have at least one employee. You can read its key provisions in this article: Details about Michigan's new Earned Sick Time Act.

For Michigan employers that use QuickBooks Payroll, we fully support the ability to track Michigan Earn Sick Time. If you're already tracking paid time off in QuickBooks Payroll, you'll need to review your current paid time off policies to help ensure you meet the minimum requirements. Also, I'll gladly guide you if you still need to set up time off for your employees.

In QuickBooks Desktop Payroll, you'll need to start by creating a time off payroll item. Here's how to do it:

1. On the top menu, go to Lists and then proceed to Payroll Item List.
2. Click on the Payroll Item dropdown and choose New.
3. Opt for Custom Setup, then click Next.
4. Select Wage, then hit Next.
5. Decide between Annual Salary or Hourly Wages, then click Next.
6. Choose Sick or Vacation Pay and then Next.
7. Enter a name for the item, then hit Next.
8. Select the desired expense account for the item, then click Finish.

Once done, follow the steps under Step 2: Add a time off policy to your employee in this article to apply the payroll item you just created: Set up and track time off in payroll.

For your convenience, here are the guides to help you prepare your tax forms before the new year:

• Year-end checklist for QuickBooks Online Payroll
• Year-end checklist for QuickBooks Desktop Payroll

I'm pleased to assist you with setting up QuickBooks Payroll to ensure everything aligns with the new ESTA. Should you have any more questions or need assistance down the road, don't hesitate to reach out. Wishing you a productive day ahead!

Can the leave in Quickbooks be set up so that the paid leave and the unpaid leave do not accrue on the same hours?  They earn 1 hour for every 30 hours worked. Up to 40 hours earned is paid and then after that 32 hours earned is unpaid for a total of 72 hours. Is Quickbooks able to track it so that the 40 paid hours accrue first and then the 32 unpaid hours accrue after that limit is met?

Is Quickbooks able to track the hours of paid leave and unpaid leave so that they are not accruing on the same hours?  Employees will earn 1 hour of leave for every 30 hours worked up to a total of 72 hours. The first 40 hours are paid leave and the next 32 hours are unpaid leave. Can it be set up to track them so one accrues first and the other after that?

What is the online steps for setting up the Michigan ESTA format

Yes, QuickBooks can track hours of paid and unpaid leaves to accrue on paychecks, AK45. Let me provide input about this.

In your QuickBooks Desktop account, let's create a time off payroll item to accrue an employee's paid leave. To do this:

1. Go to Lists and choose Payroll Item List.
2. From the Payroll Item ▼ dropdown, click New then select Custom Setup.
3. Then, click Wage and choose Annual Salary or Hourly Wages.
4. Once done, select Sick or Vacation Pay, then Next.
5. Enter a name for the item and choose the expense account you want for the item, then Finish.

Once done, follow Step 2: Add a time off policy to your employees outlined in this article: Set up and track time off in payroll. It includes specific details to help you enter the number of hours that will accrue.

Once the first 40 hours are paid, you'll create an unpaid item from the employee's Payroll Info whose rate is zero. Then, refer to these steps:

1. Go to the Sick/Vacation section and choose Every Hour on your paycheck under the Accrual period.
2. Enter the required Maximum number of hours to accrue (72 hours) and the Hours accrued per hour paid.
3. Review all details and click OK.
4. When running payroll, the item created will be marked as an unpaid leave. Please make sure to review all information on the paycheck before submitting it.

Also, you can consider updating your payroll tax table to stay compliant with paycheck calculations.

On the other hand, to address Pure Plumbing's query, here's how to set up the Michigan ESTA format in QuickBooks Online:

1. Go to the Payroll menu and click Employees.
2. Choose the specific employee.
3. From the Time Off section, click Start or Edit.
4. Select Add new [time off pay] policy from the dropdown ▼ menu to add a policy for:
   • Vacation Pay
   • Paid time off
   • Sick Pay
   • Unpaid time off
5. Select an option on how the program accrued hours and enter the correct figure.
6. Enter 30 or 40 under the Maximum allowed option.
7. Once done, hit Save.
8. The policy you created will be available to all of your employees. Select this policy for your other employees or create a new one for them.

Additionally, you can read Michigan's ESTA key provisions in this article: Details about Michigan's new Earned Sick Time Act.

Once everything looks good, here are the references to help you prepare and file payroll taxes and forms in your account:

• Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll.
• Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll.

Keep your queries coming into this thread so we can provide further assistance when managing accruals in your account. Have a good one!

What you all fail to mention, in every single instruction on this, is that you must have decimals setup in the "General" tab under company preferences FIRST!  Then you can enter in the "every hour worked",  0.03306 and that comes out to the 1 hour for every 30 hours worked. Please start adding this little "tidbit" of info to your instructions!!!!!