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Paid Time Off FAQ

Can I set up Paid Time Off (PTO) and Sick Leave policies for all of my employees at once?

Yes, PTO and Sick Leave policies can be set up for all employees without a current PTO or Sick Leave policy, and for all future employees, from your Payroll Settings.

Do all of my employees need to have the same PTO and Sick Leave policy?

No, you can set up unique PTO and Sick Leave policies for each of your employees.

Can I set up multiple PTO and Sick Leave policies for one employee?

No, you are currently limited to one PTO and one Sick Leave policy per employee.

What happens if I have an employee who uses more PTO than they have accrued or have left?

It is your choice to allow an employee to use more PTO or Sick Leave hours than they have in their current balance. If you choose to allow your employee to do this, you will be notified when processing payroll that the amount to be paid exceeds their current balance.

Do overtime and double time hours count towards PTO and Sick Leave accrual?

Yes, overtime and double time hours do count towards PTO and Sick Leave accrual on a 1:1 basis — they do not count 1.5x or 2x.

I have a salaried employee I pay through the additional field who I need to pay for PTO and Sick Leave. How do I do this?

You can do this by calculating your employee’s hourly rate and entering the amount into the rate field. The PTO and Sick Leave hours added will then be paid out at that rate.

Where can I get more information on California’s Paid Sick Leave Law?

Check out the Square Payroll article on the California Paid Sick Leave Law.

You can also find additional information on how to set your PTO policy to be compliant with California’s Paid Sick Leave Law in The Bottom Line blog.