Tracking Employee Vacation or Sick Time (Overview)

Vacation and sick time for employees can be set up two ways:

  • Employees earn all their hours at one time (for example, at the beginning of the year).
  • Employees earn a specified number of hours each payroll period that accrues throughout the year.

If you subscribe to a Sage Business Care plan, when employees go on vacation or are sick, the used hours are recorded on their paychecks and subtracted from their total hours allowed or earned. The remaining hours are tracked throughout the payroll tax year.

If you don't subscribe to one of the Sage Business Care plans, you can set up the policies for informational purposes, but you will have to manually calculate vacation and sick time.

To quickly set up vacation-time defaults, sick-time defaults, or both, use the Payroll Setup wizard. You can then set up employee records with their allotted vacation and sick hours for the payroll tax year. To open the Payroll Setup Wizard, select Maintain, Payroll, Payroll Settings. Vacation and sick time are set up under Benefits on the left.