When creating a time off policy, you'll choose whether it's paid or unpaid, select a policy type (Time off or Sick leave), provide a name and description, and set the effective date. Here's how to do it:
Go to Admin View, then Time Management › Time Off Policies.
Select Publish policy in the upper-right corner to open the setup window.
Under Policy payment settings, select Paid leave or Unpaid leave.
Note: Paid leave is turned off with the message "Paid leave requires a payroll company for this tax entity" if the tax entity doesn't have one.
Under Policy type, select Time off or Sick leave.
Answer What do you want to name this policy?
(Optional) Add a policy description.
Enter the Effective date for this policy.
Select Next in the upper-right corner to proceed to the next step.