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A
allendhoekod
January 3, 2024
Question

How can I set an employee to accrue 1 hour of sick time per 30 hours worked up to 40 hours per year as now REQUIRED by CA State law?

  • January 3, 2024
  • 1 reply
  • 0 views
QBO only allows you to accrue the 40 hours of yearly sick time (per hour or per pay period) over the course of the whole year. CA law now requires you to accrue it at a rate of no less than 1 hr of sick time per 30 hrs worked. QBO has no way of specifying this. Their only option that complies with State law is to give them the 40 hrs up front which most employers do not want to do. Is QBO payroll going to the sick pay accrual options to comply with CA State law?

1 reply

R
RCV
January 3, 2024

We appreciate you for providing us with in-depth details of your employee's time off concern in QuickBooks Online (QBO), allendhoekod.

 

Yes, QuickBooks Online (QBO) is always in compliance with the payroll and tax policy coming from your state. We can manually set up it under Sick pay, then select 30 hours/year (accrued each pay period) with max of 30 hours. If you can't edit it, then, just choose Add new paid time off policy for the employees. See the screenshot for your reference:

 

 

Here's how to edit your policy with:

 

  1. Go to Payroll, then Employees (Take me there).
  2. Choose your employee.
  3. From Pay types, tap Start or Edit.
  4. Scroll down to the Time Off Policies section. Next to the Paid time off or Unpaid time off, enter the current balance. Or if you want to change the policy, select Edit ✎ then choose how the hours are accrued, Hours per [time period] worked, and Maximum allowed (optional), then select Save.
  5. When finished, press Save.

 

 

To learn more about setting up and tracking time off, vacation, and sick pay for your employees, check out this article: Set up and track time off in payroll. However, if you’re unable to change or update the paid time off policy, I recommend you get in touch with our Payroll Support Team. They'll pull up your account in a secure environment and help you with this one.

 

Additionally, here's a link that'll help you manage payroll tasks. It has topics with articles to guide you along: View all help for QuickBooks Online Payroll.

 

Drop a reply anytime if you have follow-up questions or concerns about payroll. I'll be glad to answer them for you. Take care and have a great day ahead.

    A
    allendhoekodAuthor
    January 6, 2024

    I'm afraid you totally missed the point. CA law requires us to give 40 hrs of sick time per year with an accrual rate of at least 1 hr per 30 hours worked. That means they will accrue the 40 hrs in about 7 months of full time work. The only options in QBO cause the sick time to be accrued evenly over the course of the whole year - whether it be per hrs worked or per pay period. That does NOT comply with CA law. It doesn't accrue the hours quickly enough. Your example shown is even worse by only accruing 30 hrs of sick time over the course of the whole year (not enough hrs to comply and not accrued fast enough). QBO needs to change the set up to allow us to set an accrual rate (1 hr per 30 hrs worked) up to a certain maximum (40 hrs) per year. The only option available in QBO that complies is to give the employee the whole 40 hrs up front which is not desirable in many situations. This needs to be fixed now. The new law took effect Jan 1.

      A
      AbegailS_
      January 6, 2024

      I can assist you with managing your sick time accruals in QuickBooks Online Payroll based on California regulations, @allendhoekod, @allendhoekod.

       

      As per the new state law in California, employees are eligible to accrue up to 40 hours of sick time per year, which is equivalent to 5 days. To comply with this requirement, I suggest setting up the pay period to accrue sick time based on the number of hours worked, and setting 40 hours as the maximum limit for sick time accrual per year.

       

      By configuring the pay period to accrue sick time based on hours worked and capping the total accrual at 40 hours per year, you can align with the new state law while also ensuring that employees receive their entitled sick time.

       

      I have attached a screenshot below for your reference.

       

       

      I'm adding this article for more details: Set up and track time off in payroll. Also, you can check out this article for more compliance information: Information on new taxes, state rate issues, and more!

       

      In addition, if you're looking for more information about various tax-related topics such as tax forms, withholdings, unemployment, e-filing, and payment options. It's always a good idea to stay informed about tax-related matters to ensure you fulfill your obligations and make informed decisions.

       

       

      By following the outlined steps, you can adjust your maximum sick hours to comply with California regulations. If you have additional inquiries related to QuickBooks, please don't hesitate to ask them here in the Community.

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