Accounting, Payroll & Pension Issues/new law about sick leave for employees

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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

Answer
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

Expertise

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.

Experience

30 years' experience doing tax and accounting work

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

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