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greg14
Level 2

Sick pay accrual - QBO payroll

Does anybody know how the QuickBooks Online payroll works for sick pay accrual?


In California, employers are required to accrue 1 hour of sick pay for every 30 hours worked per employee. They are required to allow employees to accrue at least 24 hours per year and carry over up to 24 hours of unused sick pay from one year to the next.


I see there is a way to accrue sick pay based on hours worked. There is also a field for the maximum sick pay hours.


It doesn't seem to work if there is only one field for maximum sick hours accrued because there are two limits, one for the carryover hours from last year and the other for sick hours accrued in the current year. If I enter 40 as the limit then it will no longer accrue sick hours in the year if the employee is carrying the maximum hours from the prior year. If I enter 80 then it could accrue up to 80 hours just for the current year if the employee had no carryover.

 

Am I missing something here?

2 Comments 2
ChristineJoieR
QuickBooks Team

Sick pay accrual - QBO payroll

Thank you for posting here on the Community page, @greg14. I can see you need to manage your sick actuals based on California. Let me share additional information about this topic in QuickBooks Online Payroll.

 

In QuickBooks Online, you can set up sick pay accrual based on hours worked for your employees. However, the system may not directly support specific carryover and accrual limits mandated by California law. To ensure compliance, you may need to manually monitor and adjust the sick pay accruals in QuickBooks Online to align with the legal requirements for sick leave in California.

 

Here's how:

 

  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 off, Unpaid time off, Sick Pay, or Vacation Pay ▼ dropdown, select Add new [time off pay] policy.
  5. Complete the on-screen fields to create your policy, then select Save.
  6. When finished, select Save.

 

You can also view this page anytime if you need more guidance about the process of entering PTO for your employees: Set up and track time off in payroll.

 

Following the steps above will allow you to modify your maximum sick hours based on California regulations. If you have any more QuickBooks-related questions, feel free to share them here in the Community. We're always here and ready to help with your inquiries. Have a fantastic day!

greg14
Level 2

Sick pay accrual - QBO payroll

thanks for your reply. 

 

This is not a good solution. It has taken me literally years to figure out that you don't support the carryover calculation. You should just post that as a warning right on the screen instead of trying to hide it.

 

I don't have time during busy season to try to figure out workarounds. This is not manageable with large workforces. I will be looking for other payroll solutions.

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