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How to calculate and record monthly paid time off ( vacation and sick leave) expenses?

I find out that it is confusing to calculate employees' paid time off expenses on 12/31 and 1/31 of each year.

For example: On 12/31/2018, employee A used $100.00 vacation, had $100.00 unused vacation benefit remaining to be carried over to 2019. Employee A also used $50.00 sick leave benefit, had $50.00 sick leave benefit remaining. However, company would forfeit this $50.00 unused sick leave benefit.

Question: What is the total amount of paid time of expenses of employee A on 12/31/2018?

We currently link payroll vacation benefit to a liability account and sick leave benefit to an expense account.

Thank you!
A QuickBooks user


Paul Aikins
Title: Director of finance
Company: USI
(Director of finance, USI) |

Are you on cash or accrual basis? What do you mean by the company would forfeit the unused sick leave benefit? Do they pay the employee for unused leave?


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