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tracy26
Level 1

Sick Leave Accrual

I have set up in the employee's sick leave accrue at .03333 for every hr worked with a max of 40 hrs.  For the past few weeks it keeps accruing past 40 hrs.  Why is this and how do I get it to stop without me going back in and changing it back?

 

5 Comments
Emily M
QuickBooks Team

Sick Leave Accrual

Hey there, @tracy26.

 

Let’s resolve the issue with the employee’s sick leave accruing the past 40 hours. When calculating sick time, there are two calculation methods which are per hour or per paycheck.

 

To calculate basted on hours worked, you’ll take the number of hours they will accrue in a year and divide by 2080. If you want it to be based on per paycheck, you’ll need to take the total number of hours they will accrue in the year and divide it by the number of checks in the year.

 

For further information about adding and changing sick accruals on an employee profile, follow this article below:

 

https://quickbooks.intuit.com/learn-support/en-us/paid-time-off/set-up-and-pay-sick-and-vacation-tim...

 

Reach back out if you have other questions.

BigRedConsulting
Community Champion

Sick Leave Accrual

From your screenshot it does look like QB accrued past the max balance of 40 hours you have set up, which it shouldn't do.

 

Still, it's kind of strange that your balance is so high at all, given that you have the option to reset at the start of the year set.  What happened there?  Did it not reset?

smacattack
Level 1

Sick Leave Accrual

When you want to put a limits on how much Sick or Vacation time can accrue, you put the figure in the "Maximum number of Hours" field.  That being said, for the NYS Sick Leave, you need to continue to accrue hours even after 40.  They can only use 40 hrs in a calendar year, but  they can still accrue hours to have available at the beginning of the next year.

 

My concern is how QB has the accrual options (Beginning of Year, Every Paycheck & Every Hour on Paycheck) .  Accrued hours based on Every Hour, will accrue on all hours.  This includes when you use Vacation or Sick Time items, which should not be included.  It should only be on hours worked.  If you have payroll items for Holiday, Bereavement, Jury Duty, Sick or Vacation time, it will a calculate on all those payroll items and inflate the Sick Time that is accruing on the employee.

 

There needs to be a way to specify which payroll items should be used/included when indicating the "Every Hour on Paycheck" option to ensure Sick Leave is accruing correctly.

 

Hope this helps you Tracy26.  Hope QB updates this feature asap.

kt291
Level 1

Sick Leave Accrual

I have been trying to get the answer to this question and can't find it.  If you set up QB to accrue Sick Time by "Every Hour on Paycheck", does it indeed accrue on sick and vacation hours paid?  It should only be on Hours Worked (Regular hours).  Also, does it accrue sick time on Overtime hours worked?

JessT
QuickBooks Team

Sick Leave Accrual

Hi kt291,

 

Yes, for Every Hour on Paycheck, accrual is based on regular hours only. It does not accrue hours based on overtime or the hours used to pay for sick and vacation leaves.

 

Hope this clears up everything. If you need more information about tracking sick and vacation time off, just refer to the article that Emily M shared above.

 

If you have other questions in mind, you can always go back to this thread.

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