Sick Pay Maximums In QuickBooks

Read this article to get detailed information about how to set a maximum for carryover sick pay in QuickBooks Desktop.

The QuickBooks Desktop 2019 version allows you to see sick and vacation time accruals, balances and shortfalls on the employee pay stubs. This also provides enhanced compliance with the state-mandated maximum accrual rates.

The QuickBooks Desktop 2019 R3 and newer versions allows you to set a maximum for carryover sick pay.

Note:

• If you receive a pop-up stating Warning: Sick Time Available Exceeds Limit, you can approve or deny a negative sick time balance.
• Modifications made in Maximum Type apply to each employee you business has, both current and future. Modifications made to other company preferences for payroll would apply to upcoming or new employees only; there will be no changes applied to the existing employees.
• For other payroll setup information, you can go to the Help menu, choose QuickBooks Desktop Help or just press F1 key.

Set Sick And Vacation Time

Following steps are in compliance with the state regulation.

1. From the main menu, choose Edit > Preferences.
2. Choose Payroll and Employees and then choose Company Preferences.
3. Click on Sick and Vacation.
4. From the Set accrual limit section, choose required options for you:
   • Maximum hours at a time: The total hours a person can save at a single time. The hours will be accrued once their balance is less than the maximum amount. More than the maximum number can also be accrued in a single year of the use some. 
   • Maximum hours for the year: You can save total hours in one year. Once the maximum limit is reached, they won’t accrue anymore until the upcoming year.
5. From the Maximum hours to carryover, provide the maximum number unused sick hours that you have provided to your employees to carry forward into the new year.

The provided information should be helpful for you and you should be able to understand the Sick Pay Maximum feature in QuickBooks Desktop. However, if you are still in doubt, you can dial our toll-free number +1-866-701-7446 and get instant help for your issues.