Skip to main content
August 14, 2023
Question

Accruing annual leave whilst on sick leave

  • August 14, 2023
  • 1 reply
  • 0 views

Hi,

Allarmingly I have noticed that a staff member who is on long term sick has not been accruing Annual leave (as per the government regulations). Can anyone else confirm if they are having the same issue? I have been on the phone to QBO for in excess of an hour and a half and there seems to have been no automatic provision included when my payroll was setup in 2017. How did every other employer incorporate this calculation or have they just done this manually?

When adding an absence due to illness via the employee's page it only points to the statutory sick pay category, which does not account for accruing annual leave whilst on sick pay...

1 reply

August 14, 2023

Hello Cjamieson76, thanks for posting on the Community page, im afraid you would have to upgrade to advanced payroll for leave accruals as Standard payroll don’t accrue leave.

August 14, 2023

Hi Ashleigh, I do have advanced payroll. When selecting stautory sick pay (System) there is no provision allowing for Annual leave acrual. There is another pay categorie 'Sick Leave Taken' - which does allow for annual leave acrual but this cannot be selected in any way via the 'add statutory payment' function on an employee's record @Ashleigh1 . If you could possbily help, I would be very appreciative.

August 15, 2023

Hello there, @cjamieson76.

 

Since you have the Advanced Payroll version, we'll have to form a Period of incapacity for work (PIW) to pay SSP to your employee. This is a period of sickness lasting 4 or more consecutive days, this includes non-working days, bank holidays, and weekends. 

 

To pay the sick pay, follow the steps below:

 

 

  1. Go into your Open pay run, and select the employee you wish to pay.
  2. Click on ActionsPay Statutory Leave.
  3. Select Statutory Sick Pay from the drop-down list. This will open up the SSP screen.
    - The ‘from’ and ‘to’ dates default to the date range of your open pay run.
    - The waiting days will default to 3, but you can override this should you require.
    - The qualifying days default to Mon to Fri.
  4. Select the start and end date your employee was off sick by clicking the calendar buttons.
  5. Tick the qualifying days your employee works.
  6. In the Basic Pay Adjustment drop-down list, you can select one of the following options:
    Reduce basic pay by statutory amount - Pays the Basic pay deducting the SSP
    Do not pay basic pay - Pays only the SSP
    Pay basic pay as entered - Pays the Basic pay along with the SSP
  7. Click Save.

 

For more details about this process, you can check out this article: Statutory Sick Pay (SSP) in QuickBooks Online Advanced Payroll.

 

You can also go to the Statutory Payments in your employee's profile:

 

However, I recommend contacting our Technical Support Team if the issue persists. One of our experts has the tools to perform a screen-sharing session to further check your employee and account setup.

 

I'm all ears if you have other concerns about the system's features and managing your employees in QBO. Take care, and have a great day!