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.

Accounting, Payroll & Pension Issues

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Arthur Naman


General accounting and bookkeeping questions. Specific questions pertaining to: monthly bookkeeping, preparing financial reports; reconciling accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.


30 years' experience doing tax and accounting work

MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

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