Sick Leave

[brentbond]

Hi. Starting 7/1/17, Arizona requires mandatory sick leave for all employees. The formula for calculation is .03333 hours sick earned for every 1 hour worked. I have 1 part time employee and need to know how to set this up in Payroll. How do you

1. Show on the employee's payroll stub the amount of hours accrued and used?

2. How is sick leave entered and setup as a payroll item?

3. Is sick leave taxed (state and/or federal) when it is used?

Thanks for any help you can pass on to me.

----- Brent -----

[NeilZ]

Hi. Starting 7/1/17, Arizona requires mandatory sick leave for all employees. The formula for calculation is .03333 hours sick earned for every 1 hour worked. I have 1 part time employee and need to know how to set this up in Payroll. How do you

1. Show on the employee's payroll stub the amount of hours accrued and used?

2. How is sick leave entered and setup as a payroll item?

3. Is sick leave taxed (state and/or federal) when it is used?

Thanks for any help you can pass on to me.

----- Brent -----

FWIW .. Sick Leave, as well as Vacation etc, is a manual entry in the Payroll system, it is NOT a payroll item as far as accruing it. You would add it by using Payroll's Maintain List of Employees function, then go to the Time Off tab. There you would click on the ADD button to add hours to sick time or vacation, etc. The screen is pretty self-explanatory.

From what I can tell based on a Google search, an employee’s PST accrues at a rate of no less than one hour for every 30 hours worked. If the employer has 15 or more employees, the maximum accrual is 40 hours of PST per year. If the employer has fewer than 15 employees, the maximum accrual is 24 hours of PST per year.

Since this is a manual calculation and entry into the system, if the employee works 15 hours a week, after two weeks, you would add 1 hour. To make it easy, if you pay on the 15th and end of the month, then before you create the paycheck, you would manually add .5 hour of sick time to the employee's record. If you have one of those 5 week months, you would add .75 hours. This information does appear on the employee's pay stub.

If the employee uses some sick time, before you run payroll, you need to head to the Time Off tab where you add hours, and enter the USE of hours. Then when running payroll, you would enter the hours used as 'other' when you enter the time worked. However, you need to modify the employee's Income pay item to reflect the hourly wage under the 'other' hours section before doing that for the first time.

Does this help ?

Oh, as far as whether this is taxable, I would suggest checking with a local accountant. If it is NOT taxable, then you need to ignore what I said about the 'other' area of the Income pay item, and create a separate pay item for sick pay and show that it is not taxable.

[brentbond]

Thanks for the help. I know what to do now.

----- Brent -----

[Kelli]

Michigan has a new law effective Feb 21, 2025 where employees earn 1 hour paid sick leave per 30 hours worked. What I wonder is if PowerChurch has added the ability to track the accrual of the sick hours or do I need to track the accrual outside of PowerChurch and add manually?

I do understand how to add the hours earned each pay under Maintain List of Employees if I need to track it outside of PowerChurch.

[NeilZ]

Michigan has a new law effective Feb 21, 2025 where employees earn 1 hour paid sick leave per 30 hours worked. What I wonder is if PowerChurch has added the ability to track the accrual of the sick hours or do I need to track the accrual outside of PowerChurch and add manually?

I do understand how to add the hours earned each pay under Maintain List of Employees if I need to track it outside of PowerChurch.

It is still a manual entry.

[Kelli]

Thanks for the confirmation.