How can i setup sick leave policy so employee earns 1 hours of sick leave for every 40 hours worked No limit the first year Unused rolls over to second year capped at 80

Thank you so much.  I just set it up.  I wont know if it worked for couple weeks as we are paid bi-weekly

How can this same situation be set up in Desktop Payroll for hours worked?

How can this same situation be set up in Desktop Payroll for only Hours Worked?

Hello there, dana. Thanks for joining here in the thread. Let me help you set up a sick leave policy inside QuickBooks Desktop (QBDT).

Managing employee time and attendance is made easy with QBDT Payroll. With this feature, you can set up and track the time your employees take, including sick leave, vacation time, and other forms of paid time off. Establishing a sick leave policy is essential for ensuring your employees have the support they need when dealing with health-related issues. Follow the steps below to proceed with setting up:

1. In your QBDT, go to Edit, then click Preferences. 
2. Choose Payroll & Employees and select Company Preferences.
3. Click Sick and Vacation.
4. In the Sick column, choose Every hour on paycheck for the Accrual period. 
5. Fill in the defaults to set up. At the bottom, note to check the Do not accrue boxes if you don't want time accrued when paying sick/vacation/overtime.
6. Once done, hit OK. 

Moreover, I suggest scanning this article as your reference in creating employees' paychecks: Create and run your payroll. 

Reply below for more questions about setting up a sick leave policy in QBDT. I'm here to help you. Take care! 

This still accrues for every hour on the paycheck.  When adding Holiday hours or any other form of non-worked hours to the check, they need to be excluded from the accrual.  This does not fix that issue.

Hello there, @danaolson. Let me chime in and share a workaround so you can set the holiday hours for hours worked without accruing it in QuickBooks Desktop.

Since you want to add the holiday pay to your employee's paycheck without accruing it to the sick and vacation leave, I recommend creating a separate paycheck from your regular paycheck. First, you'll have to make a new payroll item. Here's how:

1. Go to the Lists menu, then choose Payroll Item List.
2. Click the Payroll Item drop-down, then select New.
3. Select Custom Setup, then click Next.
4. Choose Wage, then click Next.
5. Select Annual Salary, then click Next.
6. Choose Regular Pay, then click Next.
7. Enter the name of the new payroll item, then click Next.
8. Select the Expense account you want for this item, then click Finish.

Next, you can add this new payroll item to your employee's profile.

1. Go to the Employees menu, then select the Employee Center.
2. Double-click the employee's name to edit the payroll information.
3. Select the Payroll Info folder.
4. Add the Holiday pay item in the Earnings section.

Afterward, you can now create a separate paycheck for the holiday pay and set this, so it won't be accrued. You can follow the steps below for your guidance:

1. Go to the Employees menu, then select the Payroll Center.
2. In the Pay Employee section, click Start Scheduled Payroll or Start Unscheduled Payroll.
3. Select the employee you want to send the Holiday pay, then click Open Paycheck Detail.
4. In the Earnings section, select the Holiday payroll item you've created.
5. Fill in other necessary fields, then click Do not accrue sick/vac beside the Earnings columns.
6. Click Save & Close.

Furthermore, you can access this article to set up and track time off in payroll in QuickBooks Desktop. 

Also, you can generate payroll reports to view your business finances and employees' information. You can also customize, print, and memorize these reports.

You're always welcome to comment here in the thread if you have other questions about managing sick leave and holiday policy in QuickBooks Desktop. We'll be here 24/7 to assist you. Have a wonderful day!

Two paychecks for 1 pay period with a holiday is not a solution to this.   It's time consuming, creates two pay stubs / two paychecks.  There needs to be a solution by Intuit to integrate this.  Minnesota is not the only state with laws like this.  

Thanks for following up with the Community, danaolson.

I can certainly understand how a different ability to add holiday pay to employee paychecks without accruing it to their sick/vacation leave could be useful and have submitted a suggestion about it as of today.

You can also submit your own feature requests while signed in.

Here's how:
 

1. In the top menu bar, go to Help, Send Feedback Online, then Product Suggestion....
   
   
    
2. Choose a Type of Feedback and Product Area (optional) from your available drop-down menus.
   
   
    
3. Enter any suggestions/feedback in the Here is my suggestion: field.
   
   
    
4. If you'd like, include your name/email in the My name is: (optional) and My e-mail address is: (optional) fields.
   
   
    
5. Select Send Feedback.
   
   

Your feedback's definitely valuable to Intuit. It will be reviewed by our Product Development team and considered in future updates. You can stay up-to-date with the latest news about your product by reviewing Intuit's Product Updates webpage.

If there's any additional questions, I'm just a post away. Have a lovely Thursday!

Unfortunately, the info you provided was incorrect.  I entered it as you suggested and it gave our employees nearly 2x's the sick leave amounts.

Hi there, GonzalesPI.

I am here to give you information about setting up a sick leave policy for your employee in your QuickBooks Online (QBO) account. 

When setting up a sick leave policy in QBO, it does not automatically add the hour of sick leave for every 40 hours worked and calculates the unused rolls over to the second year.

Moreover, I encourage you to send your suggestions directly to our Product Development Team. They will carefully consider this option to ensure it meets your business needs effectively.

To send a feature recommendation, you can follow the steps below:

1. Click the Gear icon at the top, then tap Feedback.
2. Indicate your comments or suggestions.
3. Then select Next to submit feedback.

You can trace requests for features through the QuickBooks Online Feature Requests website.

Furthermore, you can utilize this article that has details on setting up and tracking time off-payroll in your QBO: Set up and track time off in payroll.

Let me know if you have further queries about setting up sick pay policies for your employee in QBO, leave a comment below. I'm always here to help.

Hi @AnneMariee - I have a similar situation with the Time Off Pay Policies, I have had 4 QBO reps set this up and it still isn't right.

OUR POLICY:  Each employee earns .77 hours of PTO per 40 hours worked, maxed out at 40 hours per year, renewing on their hire date anniversary. 

QUESTIONS:

1. Is this even possible to set up?

2. Does it matter if we use the "Paid Time Off" for our policy, or should we be using "Vacation Pay" instead?

3. Can you tell me how to set this up?

Hi there, Kris.

I can see the importance of customizing paid time off policies. However, the option to set up a policy allowing an employee to earn 0.77 hours of paid time off for 40 hours worked, capping at 40 hours per year, and having it automatically renew on their hire data anniversary is unavailable. You'll need to manually track your employees' accrued hours and enter their balance in their profiles.

Therefore, I encourage you to submit a feature request through the Feedback section. This way, our product development team can take note of the need for this feature and consider it for future updates.

Here's how to send feedback:

1. Hit the Gear icon at the top, then select Feedback.
2. Type in your product suggestions.
3. Click Next to submit feedback.

I'll leave this article for more info on setting up time off for your employees: Set up and track time off in payroll.

For future use, here's an article on generating payroll reports to view essential insights about your business and employees: Run payroll reports.

Please don't hesitate to leave a reply if you have any other questions about setting up time off for your employees. I'm just one post away.

Thank you so much for your response. I suspected that we couldn't set this up how we wanted it. It is disappointing that after speaking to two QBO reps today and two previously they all told me this was possible. After it repeatedly was not working I sought out answers in the community discussions. 

Today I was told by one QBO rep the correct way to set this up was:

Hours are accrued: each pay period

Hours per year*: .77

Maximum allowed: 40

Second rep stated it should be set up this way: 

Hours are accrued: Per hours worked

Hours per year*: .01925

Maximum allowed: 40

Do you have a recommendation on the best way for us to set this up and what to manually track?

Does it matter if we use the PTO or Vacation pay?

Our PTO Policy: PTO time is accrued for every 40 hours worked, up to 40 hours per year which renews on their anniversary hired date.

Thank you so much for all your help!!

Hello there, @Kris P1.

Let me share the best way to set your PTO policy.

Since your PTO is accrued for every 40 hours worked, up to 40 hours per year, the second recommendation is the best way to set this up which is the .01925 per hour on paycheck.

And to answer your second question. It doesn't matter if you use Sick pay or Vacation pay since these are all under PTO in the Time off pay policies section.

For future reference, you can read this article to help you update and assign pay schedules to your employees:  Set up and manage payroll schedules.

Come back here if you have additional questions setting up your PTO. I'll be willing to lend a hand. Keep safe and have a good one.