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Intuit

Pay employees under the California COVID-19 Supplemental Paid Sick Leave

As of September 30, 2021, the CA COVID-19 Supplemental Paid Leave and associated Health Premium credits have expired. Don't use these items on paychecks or credits on payroll tax payments starting October 1, 2021. Should you need to adjust your payroll for previous eligible periods, contact us for support.

Learn how to pay your employees California COVID-19 Supplemental Paid Sick Leave if they’ve been affected by COVID-19.

With QuickBooks and Intuit Payroll, you can ensure your employees get paid for eligible time off in California related to COVID-19 from January 1, 2021 through September 30, 2021.

Step 1: Determine your employee’s eligibility

If you have more than 25 employees, you’re required to provide paid sick leave if they are unable to work or telework due to any one of the following reasons:

  • Your employee is caring for self and is:  
    • Subject to a quarantine or isolation period related to COVID-19 (see note below)
    • Advised by a healthcare provider to quarantine due to COVID-19
    • Experiencing symptoms of COVID-19 and is seeking a medical diagnosis
  • Your employee is caring for a family member who is
    • Subject to a quarantine or isolation period related to COVID-19 (see note below) 
    • Advised by a healthcare provider to quarantine due to COVID-19 
    • A child whose school or place of care is closed or unavailable due to COVID-19 on site 
  • Vaccine-related:
    • Your employee is attending a vaccine appointment 
    • Your employee cannot work or telework due to vaccine-related symptoms
NOTE: The quarantine or isolation period related to COVID-19 is the period defined by an order or guidelines of the California Department of Public Health, the federal Centers for Disease Control and Prevention, or a local health officer with jurisdiction over the workplace.

Learn more about the new CA COVID-19 Supplemental Paid Sick Leave from the California Department of Labor

Step 2: Set up CA COVID-19 Supplemental Paid Sick Leave in your payroll product

Note:  If you want to receive an FFCRA credit for Sick time you paid your California employee, use the FFCRA wage items provided to pay available time.

Select your product to get started. 

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.

You have two options to track and pay eligible employees.

  1. Set up a Time Off Policy. If you have an available time off policy, you can track available and used hours for CA Covid-19 Supplemental Paid Sick Leave with this option.  If not, see Set up an Other Earnings item.
  2. Set up an Other Earnings item. If you’re already using all sick and vacation time off policies, you’ll need to create an Other Earnings item.  You’ll need to manually track available and used hours for your employees.

Note: You can’t rename the time off policy.  It’ll show on the employees’ pay stubs as Sick, Vacation or PTO.  Let your employee know which one you use for CA COVID-19 Supplemental sick time. 

  1. Select Payroll, then select Employees.
  2. Select the employee’s name.
  3. In the Pay section, select Edit ✎.
  4. From How much do you pay [employee]? select Edit ✎ or + Add additional pay types (like overtime and sick pay).
  5. Select the ▼ dropdown in an unused time off policy and choose Add new [time off pay] policy.
  6. Complete the on-screen fields to create your policy, then select Save.
  7. Select Save, then Done.
  1. Select Payroll, then select Employees.
  2. Select the employee’s name.
  3. In the Pay section, select Edit ✎.
  4. Select Additional pay types to expand the menu, and select Other Earnings.
  5. Select Edit ✎ and rename the item CA COVID Sick Pay
  6. Select Save, then Done.

You have two options to track and pay eligible employees.

  1. Set up a Time Off Policy. If you have an available time off policy, you can track available and used hours for CA Covid-19 Supplemental Paid Sick Leave with this option.  If not, see Set up an Other Earnings item.
  2. Set up an Other Earnings item. If you’re already using all sick and vacation time off policies, you’ll need to create an Other Earnings item.  You’ll need to manually track available and used hours for your employees.
  1. Go to Settings ⚙️ and select Payroll Settings.
  2. Select Time off Policies.
  3. Select Create.
  4. Select Category Sick.
  5. Enter a description: CA COVID-19 Supp Paid Sick
  6. Enter rate: 80 hours
  7. Enter Frequency: Per Year
  8. Select OK

To add the policy to an employee:

  1. Select Payroll, then select Employees.
  2. Select the employee’s name.
  3. From the Pay section, select Edit ✎.
  4. From How much do you pay [employee]? Select Edit ✎ or + Add additional pay types (like overtime and sick pay).
  5. Select the ▼ dropdown in an unused time off policy and choose Add new [time off pay] policy.
  6. If applicable, enter the current balance.
  7. Select Save, then Done.
  1. Select Payroll, then select Employees.
  2. Select the employee’s name.
  3. In the Pay section, select Edit ✎.
  4. Select Additional pay types to expand the menu, and select Other Earnings.
  5. Select Edit ✎ and rename the item CA COVID Sick Pay
  6. Select Save, then Done.

You'll need to set up a CA Covid addition pay item to ensure:

  • You're paying your employees correctly according to the CA COVID-19 Supplemental Paid Sick Leave
  • You can take the available tax credits allowed by the IRS

You’ll need to manually track your employees’ available and used hours and provide this info to them. QuickBooks won’t track or stop at the allowed 80 hours.  CA COVID-19 Supplemental Paid Sick Leave balances won’t appear on the employees’ pay stubs or in QuickBooks Workforce.  

Note: Don't use a wage payroll item (including Sick or Vacation Pay). This will impact existing sick or vacation balances, and wage items will not generate the appropriate credits on your Federal tax forms.

Set up a CA COVID addition item

  1. Download the latest payroll tax table update.
  2. Go to Lists, then select Payroll Item List.
  3. Select Payroll Item, then select New.
  4. Select Custom Setup, then select Next.
  5. Select Addition, then select Next.
  6. Enter a name for the pay item (such as CA COVID Sick Leave), then select Next
  7. Choose the Expense account where you want to track this addition.
  8. Choose the tax tracking type, National Leave ARPA - Emp.
  9. Select Next.
  10. Select Calculate this item based on quantity, then select Next.
  11. Leave the rate blank, enter $5110.00 as the limit, and then choose One-time limit.
  12. Select Finish.

You have two options to track and pay eligible employees.

  1. Set up a Time Off Policy. If you have an available time off policy, you can track available and used hours for CA Covid-19 Supplemental Paid Sick Leave with this option.  If not, see Set up an Other Earnings item.
  2. Set up an Other Earnings item. If you’re already using all sick and vacation time off policies, you’ll need to create an Other Earnings item.  You’ll need to manually track available and used hours for your employees.

Note: You can’t rename the time off policy.  It’ll show on the employees’ pay stubs as Sick, Vacation or PTO.  Let your employee know which one you use for CA COVID-19 Supplemental sick time. 

  1. Select Employees, then the employee’s name.
  2. In the Vacation and Sick Pay section, select Edit
  3. Select New Vacation Policy or New Sick Policy from the Vacation Pay or Sick Pay ▼ dropdown menu.
  4. Enter the accrual rate: At beginning of the year
  5. Enter per year: 80
  6. Enter Max Allowed Hours: 80
  7. Select Continue (or Save if you are using Intuit Online Payroll).
  1. Select Employees, then the employee’s name.
  2. In the Pay section, select Edit.
  3. In the What additional ways do you pay [employee's name] section, select Show all pay types.
  4. Select Other Earnings.
  5. Select Edit and rename the item CA COVID-19 Supp Sick.
  6. Select OK

Step 3: Pay your eligible employee

Create your paycheck as normal.  

  • If you set up a time off policy, add the CA COVID-19 Supplemental Sick Leave hours used on the sick, vacation, or PTO item 
  • If you set up an Other Earnings (CA COVID-19 Supp Sick) item, enter the amount of pay for the CA COVID-19 Supplemental Sick Leave on the item

Create your paycheck as normal:

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

Create your paycheck as normal.  

  • If you set up a time off policy, add the CA COVID-19 Supplemental Sick Leave hours used on the sick, vacation, or PTO item 
  • If you set up an Other Earnings (CA COVID-19 Supp Sick) item, enter the amount of pay for the CA COVID-19 Supplemental Sick Leave on the item

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