MN Sick and Safe Time accrual of hours

Hey there, @Sharof.

How are you doing today? I hope all is well. 

When setting up sick leave, vacation, etc. it's important to understand certain factors of the limits. I'm including some steps below that break down how to set up the limits along with a detailed explanation of each section. 

To change your policy settings: 

1. Click on Edit, then Preferences.
2. Choose Payroll & Employees then go to the Company Preferences tab.
3. Tap on Sick and Vacation.
4. In the Sick or Vacation pay section, you can update the Accrual period, Hours accrued, and Maximum number of hours to accrue.
   • Maximum number of hours at a time: The total hours' someone can save up at once. They'll accrue hours as long as their balance is below the maximum. Employees can gain more than the maximum in a single year if they use some sick time.
     • Example: You set your maximum number of hours to 40. Maria accrues 40 hours by August and uses 10 hours in October. She'll add more sick time on her next paycheck even though the new year hasn’t started.
   • Maximum number of hours for the year: The total hours someone can save in one year. Once they reach this maximum, they won't accrue anymore until the next year.
     • Example: Let's say you set your maximum number of hours to 40. Joe accrues 40 hours by August and uses 10 hours in October. He won't accrue any more sick time until the new year starts.
5. Select Reset hours each new year? if you don’t let hours to roll over to the next year.
   • If you choose this option, any hours your employee earned will reset. To carry forward any balances to the next year, enter the hours in Maximum hours to carry over.
     • Example: If an employee has 12 hours of sick time remaining at year-end and you set the maximum hours to carryover at 10 hours, only 10 hours will continue to be available for the employee’s use. The other 2 hours will be lost.
6. In the Sick and Vacation Accrual section, make sure to click on Sick and Vacation hours paid if you don't want time accrued when paying sick and vacation.

For more information about this process, check out Set up and track time off in QuickBooks Desktop.

Please know you can always reach out to our Payroll Team directly for further guidance. One of our agents can review your account in a secure environment and help set each accrual. 

Don't hesitate to let me know if you have any additional questions or concerns. I'm happy to help. Have a wonderful day ahead!