Question:

Hi Jennifer,

Do I have to pay my employees out for vacation and sick time at the end of the year?

Thanks you, 
Dr. K

Answer: 

Great question and one that’s often dictated by your own policies. If you haven’t read your own employee handbook in a while, that document likely has a provision that says, "use it or lose it" or "we pay it out".  Most states in our surrounding area (around New York) state that the employer can dictate whether they are front loading and paying out, or having time on an accrual basis, and/or use it or lose it.  Be careful; know what you promised your employees in your own documentation. You may find you’ve been over paying or you may find you have an exposure.  Happy to tag in and take a look.  ​