Accounting, Payroll & Pension Issues/new law about sick leave for employees
Hi there! I am a therapist on this site helping others too. smile. I am writing about the new law. My interns (W2) receive a portion of their hourly sessions with clients. These rates vary (say 20-$90 per hour). This is leaving me a bit confused as to how to best reimburse them for that 1 hr per 30 clients they see. Say I average their last 30 hrs (perhaps better way to do this too) and average is $65 per session. If they then earn $32.50 (as I pay them 50% of what they take in), does this mean 1 sick day is $32.50 X 8 hrs? That seems like a lot to me. Also, that amount (32.50) is before taxes. Does it matter? Lastly, are there rules as to when / how they take this sick day? Thank you!! Stuart
There are a bunch of things I am not clear about, let's discuss.
By " new law" I'm not sure what you are talking about. I read of changes in California employment law with respect to sick time. I am not aware of any federal laws regarding this matter.
It is not clear what you mean by "reimburse" them - who are you reimbursing? Are you payng a portion of fees received for therapy? To whom?
If you are paying a portion of the fees received as compensation to the therapists who work for you, then if they do not work due to sickness, vacation, etc. then I am not sure you owe them anything for the period they do not, or are unable, to work.
I would suggest you discuss these questins with someone in the state you are located in. Whoever prepares your income tax returns or payroll taxes would be a good persn to talk to.
Ask additional questions if needed - of me or another expert on this forum.