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


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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
 

kirby

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Which state are you in and is the unused sick leave called Sick Leave or PTO.
 
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Thanks for your feedback. We are in Virginia. Unused sick leave is Sick Leave. PTO includes Vacation and Sick Leave.
 
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kirby

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For vacation related expense, 2018 expense includes the $100 that was used plus another $100 accrual for the earned but unused vacation.

For the sick leave, 2018 expense has the $50 used and no accrual for the earned but unused vacation, because if the employee quits there is no payout for unused vacation required in Virginia, unless the employer has a policy of paying that.
 

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