Q. How do I setup sick time / paid time off for my employee and track it?
A. When adding your employee for the first time, enter the total upfront hours of sick time your employee would receive for a full year. The Nest Payroll app will prorate it according to the time remaining in the calendar year based on your employee’s start date. Each January, the available PTO (paid time off) will reset.
To update your employee’s PTO at any time: tap on Manage, tap on your employee’s name, then tap on Edit and scroll to the Paid Time Off settings.
The Nest Payroll app offers the available hours upfront, it does not handle the accrual method. If your state law suggests accrual (for ex, 1 hour of sick time per 30 hours worked), entering the hours upfront meets and exceeds that requirement. To use the accrual method to calculate the hours you need to offer upfront, here’s a guide:
Accrual Examples for 1 hour/30 worked:
Part-time employee (works 20 hours each week):
20 hours x 52 weeks = 1,040 hours
1,040 / 30 = 34.67 (round this up to a whole number)
Enter 35 hours upfront sick time, hours will be prorated depending on the time of the year
Full-time Employee:
40 hours x 52 weeks = 2,080 hours
2,080 / 30 = 69.33 (round this up to a whole number)
Enter 70 hours upfront sick time, hours will be prorated depending on the time of the year
Each week, if PTO has been taken, simply enter the hours taken in the sick or vacation time box when creating the pay stub. The balance remaining will get updated and your employee will see this on the most recent pay stub.
Disclaimer: These guidelines are general in nature. Please check your local city and state laws in regards to sick leave, vacation and paid time off for your specific situation and if laws have changed. Please consult an attorney or HR expert if you have specific questions as Nest Payroll cannot provide HR advice.