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Sick Pay Maximum - Accrual

Hi All,

 

I'm having a problem with the accrual of sick pay versus maximum hours.

 

We offer our employees a maximum of 30 hours a year of sick pay, accrued by 2 minutes per hour worked, on a biweekly pay basis.

 

The problem I'm having is that once an employee redeems sick pay, this not reflected in the maximum hours for the year. 

 

Let's say for example employee A has accrued a full 30 hours this year prior to requesting PTO. I pay them this on their paycheck, it is subtracted from their available hours. Then on their next paycheck the hours begin accruing again, allowing them to eventually return to the full 30 hours.

 

In this case, hypothetically an employee could have unlimited sick time, unless I manually reduce their maximum hours each time they receive PTO.

 

Hopefully this makes sense. Any advice is welcome. I'd love to find a fix for this.

 

Thanks

 

- Andrew

 

5 Comments
Anonymous
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Re: Sick Pay Maximum - Accrual

What you're referring to is a ceiling, the max balance that can accrue.  When an employee balance is at the max and some of it is used, then accrual starts again.

Not applicable

Re: Sick Pay Maximum - Accrual

Right. 

 

Like if employee A hits 30 available sick hours. Then it stops accruing. Then I pay employee A 7.5 hours of PTO. The available hours reduces to 22.5, but then it begins accruing again.

 

Do you know of any workarounds or changes to settings that would fix this? Or is this something that has to be done manually?

 

Thanks for your help.

Moderator

Re: Sick Pay Maximum - Accrual

Hi there, @MrBlack.

 

I'd be happy to help share two ways to stop QuickBooks from accruing sick time. You can either edit the Sick/Vacation setup in the employee's profile or put a check in the Do not accrue sick/vac box when creating the paycheck. Let me show you how:

 

To edit the Sick/Vacation setup:

  1. From the Employees menu, select Employee Center.
  2. Double-click the employee's name.
  3. Go to the Payroll Info tab.
  4. Click the Sick/Vacation button.
  5. Zero out the hours entered in the Hours accrued "Accrual period" field.
  6. Click OK twice.

To check the Do not accrue sick/vac checkbox:

  1. In the Enter Payroll Information window, select the name of the employee.
  2. Click the Open Paycheck Detail button.
  3. Put a check mark in the Do not accrue sick/vac box.

For more information about handling sick/vacation in QuickBooks Desktop, you can check out this article: Set up and pay sick and vacation time.

 

These steps should get you pointed in the right direction. Let me know if you have additional questions about payroll. Please know I’m always ready to help. Wishing you the best.

Anonymous
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Re: Sick Pay Maximum - Accrual

@MrBlack 

Yes like that.  Other than managing it manually, you can set it up to accrue a set amount per check so that per year you'll arrive at the desired total accrual.

Not applicable

Re: Sick Pay Maximum - Accrual

Appreciate the info everyone.

 

Sounds to me like there is no simple fix, and that the options are:

A. Do not accrue sick pay.

B. Accrue sick pay, and when they have accrued their max amount and then use sick pay, you have to manually reduce the set maximum so it does not accrue past that (perpetually accruing).

 

@Anonymouscrew, this would be a very welcome adjustment to upcoming releases.

 

Thanks

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