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As of July 1, 2016, the federal government mandates that employers must provide employees with a minimum of four days of sick leave per year, accruing at the rate of one day for every 30 hours worked. This change necessitates adjustments to payroll and accounting systems to track this new liability, which does not appear on the balance sheet. Additionally, if a company has a vacation policy, it can be compliant if it operates as a paid time off (PTO) policy that meets or exceeds the four-day minimum for sick leave. However, the issue arises that PTO must be paid out when an employee departs, complicating financial management further.