Skip to main content
L
Leisureman
March 16, 2024
Question

Illinois PLAW

  • March 16, 2024
  • 1 reply
  • 0 views

I am trying to set up a payroll policy that complies with the Illinois PLAW act.  I want to give my employees the required 40 hours per year, and as I understand it, the least I can accrue it is 1 hour leave per 40 hours worked.  I'm ok making it .025 hours per hour worked if that is the easiest way to achieve that in QBO.  I totally get that I can set up a policy to pay the .025 hours per hour worked and set a maximum hours at 40.  But that means if they have 40 hours accumulated entering their second year of employment (meaning they haven't used any time), they will not accumulate hours until they use some time, and that breaks the law.  If I set the maximum higher, then QBO is going to allow them to earn more than 40 in a year, which I also don't want.

 

How do I set up to comply with PLAW while only giving 40 per year, and also letting them roll over hours if unused?

1 reply

I
IrizA
March 16, 2024

Hello there, Leisureman. I know a way for you to successfully set up your time-off pay policies here in QuickBooks Online (QBO). 

 

Since Illinois has implemented a new act called the Paid Leave for All Workers Act (PLAWA), you can set the time-off pay policy within the information about your employee that is located within the Payroll menu. 

 

If you're already tracking paid time off, you can just edit its Time Off Policies section. On the other hand, if you're not tracking paid time off, you can create a new time off policy. Please know that all the accrued yet unused paid leave will carry over from one 12-month period to the next. 

 

Here's how: 

 

If you're already tracking paid time off: 

 

  1. Go to the Payroll menu located at the left navigation panel, and click Employees. 
  2. Choose an employee.
  3. Scroll down until you see the Time off pay policies section. 
  4. Click the pencil icon to edit the Paid time off field. 
  5. In the Hours per year field, ensure to enter 40. 
  6. Within the Maximum allowed field, you can leave it blank.
  7. Once done, click Save. 

 

If you're not tracking paid time off: 

 

  1. Go to the Payroll menu located at the left navigation panel, and click Employees. 
  2. Choose an employee.
  3. Scroll down until you see the Time off pay policies section.
  4. Click the Paid Time off dropdown and choose Add new paid time off policy.
  5. Complete the provided field. 
  6. Under the Hours per year box you can type 40. 
  7. You can leave the Maximum allowed field blank. 
  8. Once done, press Save. 

 

To view more information regarding the steps I've provided above, you can visit this website since it contains some important data: Set up Illinois Paid Leave. 

 

Furthermore, you can also export your payroll data and use it outside QBO. 

 

I'm still here to help in case you have further concerns regarding setting up your time-of policies. 

L
LeisuremanAuthor
March 16, 2024

Thank you.  And to comply with PLAW, I should choose what under "hours are accrued"?

JoesemM
JoesemM
March 16, 2024

Let me provide some guidance on the best option to select based on the hours accumulated, Leisureman.

 

In compliance with the Illinois Paid Leave for All Workers Act (PLAWA), employees are entitled to accrue one hour of leave for every 40 hours worked. In your case, you have the flexibility to decide whether you want to accrue leave at the beginning of the year or on a per-pay period basis, as long as you accumulate a total of 40 hours of paid time off each year.

 

For more details on tracking paid time off, you may follow the steps suggested by my colleague or click this article: Set up Illinois Paid Leave.

 

Additionally, I'll be sharing these resources that will guide you with your employee's deductions and adding sick or vacation leave for salaried employees: 

 

 

Feel free to leave a comment below if you have any concerns with the accrued hours of your employees or anything related to QuickBooks. We will promptly address your queries and provide you with the necessary information.

Terms & ConditionsAccessibility statement