US employers - How do I manage my employees' sick pay?

Currently, there are no federal legal requirements for paid sick leave. There are varying regulations in several states. We’ve gone ahead and set defaults for California, Oregon, Massachusetts, and Vermont to help you remain compliant. If you are outside of these States and you wish to use the Sick Pay function, you must opt in. If you are unsure about regulations around Sick Pay in your state, we always recommend consulting a tax professional. 

How do I opt-in to Sick Pay? 

If you are outside of California, Oregon, Massachusetts, and Vermont you must opt in to the Sick Pay feature.

  1. Click on Payroll > Employees > Edit Employee > Sick Leave and press Opt In
  2. Once you've clicked Confirm, Wave will generate a basic Sick Pay policy on your behalf.

How do I change my employees' sick pay policy? 

  1. Click on Payroll > Employees > Edit Employee > Sick Leave
  2. To change the default policy click on the Edit (pencil icon) beside either Balance Cap or Unaccrued Hours to make adjustments.Balance cap allows you to set a maximum limit for the amount of sick hours an employee can earn.Unaccrued hours allows you to determine how Wave handles sick pay if the employee has not accrued enough hours to cover their time away. When an employee exceeds their available sick time balance, you can either pay or not pay them for that time. 
  3. Click Save Changes to apply the updates to your new policy. 

How do I check my employees' available sick time? 

  1. Click on Payroll > Employees > Edit Employee > Sick Leave
  2. The balance or amount of sick time that an employee has available is the number of sick hours that the employee has accrued to date, minus the amount that they have used Accrued to date is the total number of sick pay hours that have been accrued during the length of the employment.  Used to date are the sick hours used by the employee.

When an employee is ill and uses a sick day, you’ll key in the hours just as you would vacation on the Timesheets. This will reduce the employee’s sick hours by the amount keyed into the timesheet.