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Starting July 1, 2016, federal law mandates that employers must provide employees with at least four days of sick leave annually, accruing one day for every 30 hours worked. This change requires adjustments in payroll and accounting to manage this new liability, which does not appear on the balance sheet, complicating record-keeping. If an employer has a vacation policy, it must be a paid time off (PTO) policy that exceeds the minimum sick leave requirements. However, the challenge arises because PTO must be paid out when an employee leaves, adding further complexity to the management of employee benefits.