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December 7, 2020
Question

Sick Leave

  • December 7, 2020
  • 39 replies
  • 144 views

How do I set up Sick Leave? The employee will earn 1 hour of sick leave for every 30 hours worked. Max time is 48 hours. No carry over. Please be specific. Thanks. 

39 replies

Level 9
December 7, 2020

Hello @myingling13,

 

You can set up your employees' sick and leave hours directly from the Preferences menu. Let me show you how.

  1. Go to Edit.
  2. Select Preferences.
  3. Click Payroll & Employees.
  4. Under Company Preferences, select Sick and Vacation.
  5. On the Accrual period menu, select Every hour on paycheck.
  6. Enter 50 sec on the first field and 48 min on the second one.
  7. Click OK twice.

In addition, here's a screenshot and an article you can read to learn more about how you can set up your employees' sick leave: Sick Pay Maximums.

Lastly, I've also included this helpful article for the steps in creating a paycheck for your employees: Learn how to create paychecks to pay your employees.

 

If you have any other questions, please let me know in the comments below. I'll be here to help. Stay safe and well!

December 8, 2020

Changing this in Preference will update all current employees? Or will I have to go into each employee and make the changes? Please be specific. Thank you. 

January 2, 2022

Thanks for joining this thread and sharing detailed information, AudreyCO.

 

Let me add a few clarifications about the employee's sick pay. 

 

The sick pay item may have been incorrectly set up on your list. I'm adding a screenshot once the employee reached the maximum limit:

 

 

You'll want to review each payroll item used and keep track of the accruals shown on the paycheck. This way, we can correct the issue. Let me show you how:

 

  1. Go to the Lists menu, then Payroll Item List.
  2. On the Payroll Item List, double-click the item used to pay the sick leave.
  3. On the Edit payroll item window, verify the type of payroll item used.
  4. If it’s incorrect, use a different one or create a new payroll item.
  5. Vacation only accrues on regular pay items such as hourly wages or salary, it does not accrue on bonus items or any additional items.

 

You can also check the employee's profile to fix this. Here's how:

 

  1. Go to the Employees menu, then Employee Center.
  2. Double-click the employee name to open the profile.
  3. On the Edit Employee screen, go to the Payroll Info tab.
  4. Select Sick/Vacation, then verify and adjust the following data as needed:
    • Sick and vacation hours available
    • Hours used in the year
    • Accrual period
    • Hours accrued is entered
    • Maximum number of hours
    • Reset hours each year
    • Start date of the accrual.
       

Also, I'm adding this article for additional reference: Set up and track time off in payroll.

 

Let me know if you have follow-up questions concerning payroll. I'll be right here to help you.


Hello,

Thank your for the explanation. As I review our payroll item it appears correct however our employees continue to have the sick time available after they use it because it is re accrued. Not sure what I'm looking for in regards to payroll item, can you clarify or post a screen shot of how the payroll item should be set up? Thank you.

June 23, 2022

How do I set up Sick Time? The employee will earn 1 hour per 30 hours worked up to 24 hours. Sick Pay can be carried over to the next year. Please be specific. Thank you!

MaryLandT
Level 10
June 23, 2022

I'm glad to help set up a sick time pay for your employee, JSorty.

 

QuickBooks will accrue an hour per 30 hours worked as long as the setups are correct. Make sure that the format is set to Minutes since you'll be following the Every hour on paycheck option. 

 

Here's how:

 

  1. Go to the 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.

 

 

Once done, go to the employee's profile and set up sick leave accruals. Here's how to do it.

 

  1. Click Employees on the menu bar at the top, then Employee Center.
  2. Double-click the employee's name to edit information.
  3. Select the Payroll Info tab, then click the Sick/Vacation... tab.
  4. Under the 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 24 as maximum the hours.
  7. Mark the Reset hours each new year box and enter the number of hours to carry over.
  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.
  10. Click OK to save changes.

 

After setting up sick leave accruals, you can start paying your employees by creating a paycheck.

 

Stay in touch with me if there's anything else you need about setting up sick pay. I'll be around to answer your questions.

July 19, 2022

When I put your ".025," number in it's not calculating 1 hour of vacation for 30 hours worked. I tested it. If you put .03333 in, then it does work, and that number makes sense. The law for NM is 1 hour accrued for every 30 hours worked starting July 1, 2022. Am I missing something?

November 30, 2023

Based on California's new sick pay law I want an employee to be able to accrue a maximum of 40 hours of sick leave per year, but allow a maximum accrual of 80 hours of unused sick time to carry over each year.  

 

Is there a way to set that up in quickbooks? 

Adrian_A
Level 8
November 30, 2023

Hello there, NMM3.

 

I'm here to help you set up a sick leave for your employees.

 

We can create a sick time-off policy to accrue a maximum of 40 hours per year. Let me guide you through the steps.

 

Here's how:

 

  1. From the Payroll tab, select Employees.
  2. Click the employee's name.
  3. Go to Pay types, then click Edit.
  4. Go to the Time off pay policies section.
  5. Under Sick pay, select 40 hours/year (accrued each pay period) with max of 40 hours.
  6. Click Save.

 

As for the accrual of 80 hours to be carried over, we can use the Paid time off field. Then, select 80 hours/year (accrued at start of year).

 

 

Moreover, I've added this article as your guide in paying employees: Create and run payroll.

 

I'm always around whenever you have concerns about setting up employee's time off.