If you are sick and you are not present at your work place then there is a policy in your organization according to which you will be paid for the day on which you are absent due to ill health. This policy is pre set by the organization in which you get the payment even if it was a non working day for you which is usually termed as sick leave. What they do is, they update certain criteria before drafting the payroll and leave structure for the employees about how many such leaves are allowed and in what situations. This information is often mentioned in the policies document or agreement paper of every employee.
Hence we can say that this paid sick leave is an additional benefit for the employee which is provided by their employers.
Since it is so important hence let us see how do we set policies for paid sick leave before running the payroll and adding the first employee to it.
1. In your QuickBooks go to the Toolbar.
2. Click on the Gear Icon there which is for settings.
3. Scroll down to Payroll Settings.
4. After which you choose Pay Schedules.
5. Under which you will see the Vacation and Sick Leave Policies section.
6. There click on Create.
7. You will find an option Category with a drop down menu.
8. Choose Sick there.
9. After this you are required to enter the policy in the description as per which this sick leave will be granted when you set up employees. For instance 12 days per year.
10. We will even input the sick leaves added to each employee per year and the maximum number of sick leaves any employee can have. Like as mentioned above any employee is granted 12 days in the beginning of the year and this expires every year end and is updated every year following information will be filled in the require sections.
Accrual Frequency: Start of every new year
Days earned per year: 12 days
Maximum Available: 12 days
Employee can take 12 leave per year as sick leave. Once it is 12 days, no more sick leaves will be added for them until they have fewer days than the mentioned days.
11. After this click on OK to save the policy and proceed.
Important to Note:
This Vacation and Sick Leave Policy can be updated before you add any employee or this can even be updated when you are adding the employees.
If there are different sick leave policies for different category of employees hence multiple sick leave policies are needed to be updated.
This can be done by creating the first policy by following the steps mentioned above then saving it and clicking on Create to enter a new policy. This way you can create as many sick leave policies as possible.