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California paid sick leave changes for 2015

About

California Governor Jerry Brown, on August 29, 2014, signed the California Healthy Workplaces, Healthy Families Act of 2014, which requires all California employers to provide employees paid sick leave at a rate of a least 1 hour for every 30 hours worked, with only very limited exceptions. This law applies to all private-sector employers regardless of size and to all state, county, and municipal employers.

Employers have 2 options to provide these hours to employees:

  • On an accrual basis (1 hour of sick time accrued for every 30 hours worked)
  • Front loading 24 hours or 3 days at the start of the calendar year, anniversary date, or 12 month basis.

Intuit Support

Although advice about labor law compliance is outside the scope of Intuit's payroll support, QuickBooks does support the paid sick leave accrual options.

There are numerous laws for labor and pay requirements, at both the federal and state level, that change approximately 75 times a year across the US. If you have any questions regarding labor and pay requirements, please contact your state agency.

For the details about California's New Paid Sick Leave law (AB 1522), see

Be sure to keep in mind, Intuit does provide labor law posters and this service helps employers stay compliant with their state agencies. These are one of the few products employers are legally required to post in their work location(s). For more info, see QuickBooks Poster Compliance Service: All you need to know.

To Enter the Accrual into the Payroll System

Per California's FAQs: Starting July 1, 2015, employees will earn at least 1 hour of paid leave for every 30 hours worked. That works out to a little more than 8 days a year for someone who works full time. But employers can limit the amount of paid sick leave you can take in one year to 24 hours (3 days).* Employers also have the option of front loading the 24 hours (3 days) to their employees at the start of the calendar year, anniversary date, or 12 month basis.

Minimum Accrual Calculation: 1 hr. divided by 30 hrs. = 0.03333 hrs.

Note: *Local Ordinances:
There may be local ordinances in your city requiring paid sick leave. Employers must comply with both local and California law. If the provisions of the local ordinance require more accrued sick leave, that provision would take precedence as it is more generous.

If your company is located in Oakland or San Francisco, you may be required to provide additional paid sick leave. See the links below and contact your city for additional information:

QuickBooks Desktop Payroll Assisted, Basic, Standard or Enhanced:

To set up an accrual basis (1 hour of sick time accrued for every 30 hours worked):

  1. Open QuickBooks.
  2. From the Employee Center, double-click the employee's name.
  3. Select the Payroll Info tab.
  4. Select the Sick/Vacation button.
  5. In the Sick section, in the Accrual period drop-down box, select Every hour on paycheck.
  6. In the Hours Accrued per hour paid field, enter 0.03333.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
    • If you have your preferences setup to show portions of an hour as minutes, when you enter a decimal amount it will convert. For example 0.03333 will convert to 0:02:00.
  7. In the Maximum number of hours enter the maximum amount of sick time allowed.
  8. In the Begin accruing sick time on field enter the date you would like to start the accrue. Per the California's FAQs, paid sick leave accrues beginning on July 1, 2015 or the first day of employment if hired after July 1, 2015, however employers may elect to advance sick leave to an employee before it is accrued.
  9. Select OK twice to close the window and save your changes.
    NOTE:  You must monitor accruals in QuickBooks to ensure you do not over pay sick time.  QuickBooks Desktop Payroll will stop accruing after it reaches the max hours, however once the employee is paid sick hours, and the amount is deducted from the total, sick pay will accrue again until it reaches the max hours.

To provide 24 hours or 3 days at the beginning of each calendar year, anniversary date or 12 month basis:

  1. Open QuickBooks.
  2. From the Employee Center, double-click the employee's name.
  3. Select the Payroll Info tab.
  4. Select the Sick/Vacation button.
  5. In the Sick section, under Hours available as of ##/##/## enter 24.  This will provides 24 hours or 3 days immediately to the employee.  Per California's FAQs it states "Starting July 1, 2015, employees will earn at least one hour of paid leave for every 30 hours worked.  That works out to a little more than eight days a year for someone who works full time. But employers can limit the amount of paid sick leave you can take in one year to 24 hours (three days)."
  6. In the Accrual period drop-down box, select Beginning of Year.
  7. In the Hours accrued at the beginning of the year field, enter 24.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  8. In the Maximum number of hours enter the maximum amount of sick time allowed.
  9. In the Year begins on field enter the date that corresponds to the beginning of each calendar year, anniversary date or twelve months basis.  See California's FAQs for more details.
  10. Select OK twice to close the window and save your changes.
    NOTE:  You must monitor accruals in QuickBooks to ensure you do not over pay sick time. QuickBooks Desktop Payroll will stop accruing after it reaches the max hours, however once the employee is paid sick hours, and the amount is deducted from the total, sick pay will accrue again until it reaches the max hours.

Intuit Online Payroll Enhanced:

To set up an accrual basis (1 hour of sick time accrued for every 30 hours worked):

  1. Select the Employees tab.
  2. Select the employee's name.
  3. In the Vacation & Sick Pay box, select Edit.
  4. Select to create a new sick pay policy or edit an existing one.
  5. Select per hour worked as the accrual option.
  6. Enter 0.033 in the hours per hour worked field. Note: This is the minimum amount set by the state. If your employees accrue more than 0.033 per hour worked, enter that instead.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  7. Enter a maximum (optional).
  8. Select Continue.

To provide 24 hours or 3 days at the beginning of each calendar year or anniversary date:

  1. Select the Employees tab.
  2. Select the employee's name.
  3. In the Vacation & Sick Pay box, select Edit.
  4. Select to create a new sick pay policy or edit an existing one.
  5. Select at beginning of year or anniversary date as the accrual option.
  6. Enter 24 in the hours per year field.
    Note: Don't forget to check for local ordinances in your area that may differ from state law. The accrual amount may be different.
  7. Enter a maximum (optional).
  8. Select Continue.

Intuit Online Full Service Payroll:

To set up an accrual basis (1 hour of sick time accrued for every 30 hours worked):

  1. Select the Employees tab.
  2. Select the employee's name.
  3. In the Vacation and sick pay policy box, select Edit.
  4. Select to create a new sick pay policy or edit an existing one.
  5. Select per hour worked as the accrual option.
  6. Enter 0.033 in the hours per hour worked field. Note: This is the minimum amount set by the state. If your employees accrue more than 0.033 per hour worked, enter that instead.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  7. Enter a maximum (optional).
  8. Select Continue.

To provide 24 hours or 3 days at the beginning of each calendar year or anniversary date:

  1. Select the Employees tab.
  2. Select the employee's name.
  3. In the Vacation and sick pay policy box, select Edit.
  4. Select to create a new sick pay policy or edit an existing one.
  5. Select at beginning of year or anniversary date as the accrual option.
  6. Enter 24 in the hours per year field.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  7. Enter a maximum (optional).
  8. Select Continue.

QuickBooks Online Payroll:

To set up an accrual basis (1 hour of sick time accrued for every 30 hours worked):

  1. From the left menu, select Payroll menu > Employees.
  2. Select the employee's name.
  3. In the Pay section, select the edit (pencil) icon.
  4. In the How much do you pay [employee] section, select the edit (pencil) icon.
  5. Select Sick Pay.
  6. Select to create a new sick policy or edit an existing one.
  7. Select per hour worked as the accrual option.
  8. Enter 0.033 in the hours per hour worked field. Note: This is the minimum amount set by the state. If your employees accrue more than 0.033 per hour worked, enter that instead.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  9. Enter a maximum (optional).
  10. Select Continue.

To provide 24 hours or 3 days at the beginning of each calendar year or anniversary date:

  1. From the left navigation menu, select Payroll menu > Employees.
  2. Select the employee's name.
  3. In the Pay section, select the edit (pencil) icon.
  4. In the How much do you pay [employee] section, select the edit (pencil) icon.
  5. Select Sick Pay.
  6. Select to create a new sick policy or edit an existing one.
  7. Select at beginning of year or anniversary date as the accrual option.
  8. Enter 24 in the hours per year field.
    Note: Don't forget to check for local ordinances in your area that may differ from state law.  The accrual amount may be different.
  9. Enter a maximum (optional).
  10. Select Continue

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