Employers in California will soon have a new policy to follow in regard to offering sick pay for employees. The Healthy Workplaces, Healthy Families Act was passed last year and takes effect July 1, 2015.
Although many businesses currently offer sick pay, it may not meet the new guidelines and will require updates to be compliant. And all businesses not currently offering sick pay will be required to do so.
There are two methods that can be used to track sick pay: granted and accrual. Each has different rules regarding how it is accrued, if there can be a “use it or lose it” policy, and if unused hours roll over into a subsequent year.
The policy also describes the family members covered under this legislation (it isn’t only if the employee is ill or has a medical appointment) allowing compensation for taking time off to care for specific loved ones.
Because I’m a payroll company and need information from each of our clients in order to set up the sick pay tracking appropriately, I was going to write a letter to explain all of the details. It became a longer and longer letter and I felt it was too complicated to relay the information in that manner. Because of this, I held a workshop to cover the information in detail and help attendees determine which process is right for them.
Many were unable to attend but are still needing information on this topic. If you would like a resource giving you all the details, I have created an audio recording with all the requirements and created a written resource guide as well. This information can be found here: https://ko167.infusionsoft.com/app/page/affordable-bookkeeping–payroll-services—workshop-replay
Employers will need to give information to their payroll company in order for information to be tracked and reported correctly. Make sure you give your processor plenty of time to set it up prior to the July 1 deadline.
Please note if you fail to follow the policies spelled out in the law, you could face fines up to $4000.00. If you are not aware of the guidelines and are unsure of how to set this up for your company, I encourage you to purchase this resource. You’ll be glad you made the investment!
Candy
