1. What is Sick Pay Accrual?

Sick pay accrual is the amount of paid sick time an employee earns based on hours worked and the company's accrual rate. It represents earned but unused sick time available to employees.

2. How Does the Calculator Work?

The calculator uses the sick pay accrual formula:

Where:

• Pay Period Hours — Total hours worked in the pay period
• Rate — The sick time accrual rate (e.g., 0.0385 for 1 hour per 26 hours worked)

Explanation: The calculation multiplies hours worked by the accrual rate to determine earned sick time.

3. Importance of Accrual Calculation

Details: Accurate sick pay accrual tracking ensures compliance with labor laws, fair employee benefits administration, and proper financial accounting for accrued liabilities.

4. Using the Calculator

Tips: Enter total hours worked in the pay period and the sick time accrual rate (as a decimal). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical sick pay accrual rate?
A: Rates vary by company policy, but common rates range from 0.0385 (1 hour per 26 hours) to 0.0769 (1 hour per 13 hours).

Q2: Are employers required to offer sick pay?
A: Requirements vary by jurisdiction. Some states/countries mandate sick pay while others don't.

Q3: Can sick pay be capped?
A: Yes, many companies set maximum accrual limits (e.g., 40-80 hours) per year.

Q4: Does sick pay carry over between years?
A: This depends on company policy and local laws. Some allow carryover while others have "use it or lose it" policies.

Q5: How is sick pay different from PTO?
A: Sick pay is specifically for illness, while PTO (Paid Time Off) typically combines vacation and sick time into one bank.