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Tracking Unpaid Leave Hours

Overview

Unpaid leave tracking allows you to record time off that employees take without pay, such as FMLA leave, state-mandated unpaid sick leave, or personal leave beyond their paid allowance. ProPay tracks these hours on pay stubs and enforces annual limits when required by law or company policy.

Track unpaid sick leave and other unpaid leave hours for employees, including state-mandated unpaid leave requirements.

ProPay can track both paid and unpaid leave hours. While paid sick and vacation time accrue automatically, unpaid leave requires manual entry but provides year-to-date tracking and annual limit enforcement.

Many states now require employers to provide unpaid sick leave. For information about state paid sick leave laws, visit Workplace Fairness.

Setting Up Paid Sick Leave

For paid sick leave requirements, use ProPay's standard vacation and sick accrual features. See Vacation and sick benefits for details.

Setting Up Unpaid Leave Tracking

Step 1: Create the unpaid leave deduction

  1. Go to Employer > Deductions Setup.
  2. Click Add New.
  3. Enter these settings:
    • Description: UNPAID SICK/LEAVE (or your preferred name)
    • Type: Select Match (M)
    • Subject to taxes: Leave unchecked (unpaid time doesn't affect wages)
    1. Click Save.

    The match type allows tracking hours without affecting paycheck calculations.

    Step 2: Set annual limits per employee

    After creating the deduction, set individual employee limits:

    1. Go to Employees > Add or Change.
    2. Select the employee.
    3. Click Deductions/Reim.
    4. Find the UNPAID SICK/LEAVE row.
    5. Enter these values:
      • Type: A (for Amount)
      • Limit Amount: Enter annual hours allowed (example: 40 for 40 hours per year)
      1. Click Save.

      ProPay will track hours taken against this annual limit.

      Entering Unpaid Leave Hours on Paychecks

      When processing payroll for an employee who took unpaid leave:

      1. From the Payroll Main Menu, click Paychecks > New Payroll.
      2. Select the employee.
      3. Find the UNPAID SICK/LEAVE field.
      4. Enter the number of unpaid hours taken this pay period.
      5. Continue processing payroll normally.

      The unpaid hours appear on the employee's pay stub along with year-to-date accumulated hours. The hours don't affect the employee's gross pay.

      Setting Up Unpaid Leave on ProPay Web

      If using ProPay Web for employee self-service:

      Set annual limits

      1. Log in to ProPay Web.
      2. Click Change Employee.
      3. Select the employee.
      4. Click Deductions.
      5. Find UNPAID LEAVE.
      6. Select Amount from the Type dropdown.
      7. Enter the annual limit in Limit Amount.
      8. Click Save.

      Enter hours taken

      1. Go to Enter Payroll.
      2. Select the employee.
      3. Enter unpaid leave hours in the UNPAID LEAVE field.
      4. Continue payroll processing.

      Viewing Unpaid Leave on Pay Stubs

      Unpaid leave hours appear on employee pay stubs showing:

      • Hours taken this pay period
      • Year-to-date hours taken
      • Remaining hours available (if annual limit is set)

      This provides transparency for both employers and employees about unpaid leave usage.

      State Sick Leave Requirements

      Many states and municipalities require unpaid sick leave. Common requirements include:

      • California: Unpaid sick leave under various local ordinances
      • Federal FMLA: Up to 12 weeks unpaid leave for qualifying reasons
      • State-specific family leave laws

      Check your state and local requirements to determine if unpaid leave tracking is mandatory. Set annual limits based on these requirements.

      Related Topics

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