How to calculate sick pay, it’s not calculating the amount

I'm here to help you calculate your sick pay, Antonit.

Beforehand, may I know what payroll version you're using? Is it the Standard or Advanced payroll?

If you're using the Standard version, let's make sure your employees meet the qualifying conditions. For more details, please read the Statutory Sick Pay (SSP) employer guide.

To properly pay SSP for your employee, please follow the detailed steps below:

1. Go to Payroll and then select Employees.
2. Select the applicable employee.
3. Click Actions and select Employee's Leave.
4. Select Statutory Sick Pay (SSP).
5. Choose the First day of leave.
   1. If you’re unsure about the Last day of leave, you can choose to set the end date to the best of your knowledge. You can always update this later. If you need to update the Last day of absence on an Employee’s SSP absence record, you’ll find it under Leave periods on the employee’s profile.
   2. For Average Weekly Earnings (AWE), QuickBooks calculates the AWE automatically. Use the AWE field only for certain instances (for example, if you're switching from another payroll software) as QuickBooks does not have the employee's payroll history to accurately calculate the AWE. In such instances, enter the correct amount. The AWE is calculated on the 8-week period before the first day of sickness.
6. Save your changes.

For more details, please see this article: Statutory Sick Pay (SSP) in QuickBooks Online Standard Payroll.

If you're subscribe to the Advanced version, we'll have to form a Period of incapacity for work (PIW) to be able 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 the sick pay, I'd suggest checking out these steps:

1. Go into your Open pay run, and select the employee you wish to pay.
2. Click on Actions, Pay 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.

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

Additionally, I've added these articles that'll help you get a closer look at your business' finances. There are several payroll reports you can use to view useful info about your business and employees:

• How to run payroll in QuickBooks Online Standard Payroll
• Run payroll reports in QuickBooks Online Advanced Payroll

Keep in touch with us if you need additional help managing your SSP. We want to make sure your employees record is accurate.