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Minnesota has enacted legislation (Senate Bill 3035) that will require employers to provide earned sick and safe time (ESST) to employees effective January 1, 2024.

What you need to know

• An employee is eligible for ESST if they work at least 80 hours in a year in Minnesota.
• Employees are entitled to begin accruing ESST on January 1, 2024, or their date of hire, whichever is later. An employee earns one hour of ESST for every 30 hours worked and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount.  
• Employees exempt from overtime should accrue based on the assumption they work 40 hours per week. If the employee’s normal work week consists of less than 40 hours, they should accrue based on the number of hours that comprise their normal work week.
• Employers must typically permit employees to carry over accrued but unused ESST into the following year. However, employers may cap total accrual at 80 hours.
• In lieu of allowing carryover into the following year, employers may choose to frontload ESST to employees at the start of the year that meets or exceeds the requirements below:
  • 48 hours: If employer pays out accrued but unused time to an employee at the end of a year at the same hourly rate as the employee typically earns for employment; OR
  • 80 hours: If employer does not pay out accrued but unused time to an employee at the end of a year at the same hourly rate (or greater) as the employee typically earns for employment.
• ESST must be paid at the same hourly rate as an employee earns when they are working.
• Employers are not required to pay employee for unused paid sick leave upon the employee’s termination, resignation, retirement, or other separation from employment. 
• Wage statements must include the total number of ESST hours accrued and available for use as well as the amount of ESST hours used during the pay period. 
•  Employers that provide paid sick leave under a paid time off policy or other paid leave policy that may be used for the same purposes and under the same conditions as the law requires, and that meets or exceeds, and doesn’t otherwise conflict with, the minimum standards and requirements provided by the law aren’t required to provide additional paid sick leave.  

Please note: Earned sick and safe time local ordinances already exist in the cities of Bloomington, Duluth, Minneapolis, and St. Paul, Minnesota. Employers are responsible for following the earned sick and safe time requirements most favorable to their employees.

As a busy business owner, do you ever find yourself struggling to find the time to manage your books?  Between operating, marketing, and managing your business and employees along with spending your free time with family and friends, trying to keep your company’s financial records up to date can be a daunting task.  A clean and accurate set of books is crucial when it comes time to file your annual tax returns, obtain a loan from a bank, or simply get an accurate snapshot of how your business is performing and areas where you could save yourself some money.  Here are some advantages in outsourcing your bookkeeping so you can free yourself from this confusing and time-consuming task to  concentrate on doing what you do best–running your business:

• More time – Frees up valuable time that you can put into growing your business.
• Save money – Only pay for the services you need. 
• Expert advice – Gives you full-time knowledge on your team without having to pay a full-time salary.
• Access to top systems – Outsourcing your bookkeeping operations gives you access to more of the top tools in the industry along with a specialized company who keeps up with the always changing laws and regulations.
• More reliable – No need to worry about finding financial staff replacements in a hurry with staff leaving. 
• Better services – Firms like MTM that specialize in bookkeeping focus all of their energy on your bookkeeping needs.  No longer do you have employees that have other responsibilities searching for time to complete the day-to-day bookkeeping.
• Scalability – Outsourced bookkeeping can be scaled up or down based on your changing needs and as your business grows! 

MTM Bookkeeping Services prides themselves on being clear about accounting terms and practices to help you make sound financial decisions for your company. We never want you to leave a bookkeeping consultation meeting confused by jargon!  Below is a list of some of the most common accounting terms for your reference along with their abbreviations and definitions. 

Accounts Payable (AP)

Accounts Payable include all of the expenses that a business has incurred but has not yet paid.  This account is recorded as a liability on the Balance Sheet. 

Accounts Receivable (AR)

Accounts Receivable include all of the revenue (sales) that a company has provided but has not yet collected payment on.  This account is on the Balance Sheet, recorded as an asset. 

Asset

Anything the company owns that has monetary value.  This account is listed on the Balance Sheet. 

Accrued Expense

An expense that has been incurred but not yet paid. 

Balance Sheet (BS)

A financial statement that reports on all of the company’s assets, liabilities, and equity. 

Book Value

As an asset is depreciated, it loses value.  The Book Value shows the original value of an asset less any accumulated depreciation.

Liability

All debts that a company has yet to pay are referred to as Liabilities.  Common liabilities include AP, Payroll, and Loans.

Depreciation

Depreciation is the term that accounts for the loss of value in an asset over time.  Common assets that are depreciated include vehicles, equipment, and buildings.  Depreciation appears on the Income Statement as an expense. 

Expense

An expense is any cost incurred by the business.  Expenses are shown on the Income Statement.

Revenue

Revenue is any money earned by the business.  Revenue is shown on the Income Statement.

Income Statement

The Income Statement (often referred to as the P&L) is the financial statement that shows revenues, expenses, and profits over a given period of time. 

Net Income (NI)

Net Income is the dollar amount that is earned in profits.  It is calculated by subtracting expenses from revenue in a given period. 

Accounting Period

An Accounting Period is a span of time that is reported in the financial statements. 

Cash Flow (CF)

Cash Flow is the term that describes the inflow and outflow of cash in a business.  The net cash flow for a period of time is found by taking the beginning cash balance and subtracting the ending cash balance. 

Debit

A debit is an increase in an asset or expense account, or a decrease in a liability or equity account.

Credit

A credit is an increase in a liability or equity account, or a decrease in an asset or expense account. 

General Ledger (GL)

A General Ledger is the complete record of a company’s financial transactions.  The GL is used in order to prepare all of the Financial Statements.

Interest

Interest is the amount paid on a loan or line of credit that exceeds the repayment of the principle balance.

Journal Entry (JE)

A Journal Entry is the method used to record all individual financial transactions made by a company into its journal. 

Trial Balance (TB)

A Trial Balance is a listing of all accounts in the general ledger with their balance amount (either debit or credit).  The total debits must equal the total credits.