How can i setup sick leave policy so employee earns 1 hours of sick leave for every 40 hours worked No limit the first year Unused rolls over to second year capped at 80

Hello there, @GonzalesPI.

I'll list down the steps to set up a sick leave policy wherein your employee earns 1 hour of leave for every 40 hours worked.

1. On the left navigation panel, click Payroll.
2. Go to the Employees tab. Then, select an employee.
3. Scroll down to the Pay types section. Click Edit.
4. Edit the sick pay policy. Choose Per hour worked on the Hours are accrued dropdown.
5. Enter 0.025 on the Hours per hour worked field. 
   • The Maximum allowed is based on the frequency of when hours are accrued. This means if your employee reaches the amount entered, their sick leave hours will automatically be limited to that number.
6. Hit Save.

Currently, there is no option to set a maximum hours limit based on a different frequency. You'll need to manually edit each employee's balance if they reach 80 hours in the second year.

For more info on setting up time off, this article has got you covered: Set up and track time off in payroll.

Here's an article for when you need to enter your employees' sick pay hours: Enter sick pay or vacation pay hours for salaried employees.

Keep in touch if you have any other questions about setting up a sick pay policy in QuickBooks. I'm just one post away.