Track and pay New Mexico Paid Sick Leave

You have two options to track and pay New Mexico Sick Leave for your employees.

1. Set up a time off policy. If you have an available time off policy on your employee profiles, you can use this option. 
2. Set up an Other Earnings item. You’ll set up a pay item on your employee profiles. You’ll need to manually track available and used hours for your employees.

Setup a Time Off Policy

You can’t rename the time off policy.  It’ll show on employees’ pay stubs as Sick, Vacation, or PTO.  Let your employees know which one you use for NM Paid Sick Leave time. 

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, select Start or Edit.
4. Under Paid time off select the ▼ dropdown and choose Add new paid time off policy.
5. Complete the on-screen fields to create your policy.
   • Add the annual maximum of 64 hours, or
   • Set the accrual at 0.0333 for every hour worked.
6. Select Save twice.

Set up an Other Earnings Item

If you use this option, add a memo to the paycheck when paying sick hours. Make sure to give your employees reports with their available and used balances.

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, select Start or Edit.
4. Select Additional pay types to expand the menu, and select Other Earnings.
5. Select Edit ✎ and rename the item New Mexico Sick Pay
6. Select Save.

1. Select Lists, then Payroll Item List.
2. Select Payroll Item ▼ dropdown, then New.
3. Select Custom Setup, then Next.
4. Select Wage, then Next.
5. Select Annual Salary or Hourly Wages, then Next.
6. Select Sick Pay, then Next.
7. Enter a name for the item, then Next. Note: If you use time off, you can rename this item to NM Sick Pay.
8. Choose the expense account you want for the item, then Finish.

Create your paycheck as normal.  

• If you set up a time off policy, add the New Mexico Sick Leave hours used on the sick, vacation, or PTO item 
• If you set up an Other Earnings (NM Paid Sick Leave) item, enter the amount of pay for the NM Paid Sick Leave on the item

Create your paycheck as normal:

1. Add the additional payroll item you created in Step 1 to the paycheck.
2. In the Rate column, enter the employee's pay rate.
3. In the Quantity column, enter the number of hours.