Offering your employees paid vacation time or paid sick leave isn't legally required by the Fair Labor Standards Act. But many small businesses offer some type of vacation and sick leave to be competitive with other businesses.
If you do offer paid time off, create a company policy that says:
Example: You may want employees to work for your company for one year before they accrue any vacation time at all.
Example: Eight hours every month or four hours every pay period. After a certain number of years with the company, employees get more paid vacation.
Example: To encourage employees to take regular breaks from work, set up a vacation policy that places a limit on the number of available vacation hours. So, if you set the maximum number of available hours at 360 and an employee reaches that limit, then QuickBooks Online Payroll stops accruing any more hours until the employee takes a vacation and the available balance falls below 360.
For general guidelines and advice, check Holidays and Vacations on the Department of Labor website or your state labor agency for more info.
To pay employees for a holiday or bereavement time, set up a holiday pay type or a bereavement pay type
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