Thank you for sharing your concern with us, @SanDiegoTPM.
Welcome to the Community! I'd be glad to help you ensure you're able to create a Holiday paycheck for your employee.
One possible reason the holiday pay is deducted from your employee's vacation time accrual is because of how your Holiday payroll item is set up. Make sure that Holiday payroll item is not set up as a "paid time off". It should be a "Wage".
Here's how to pay your employee a holiday pay:
That should do it! Feel free to let me know how it goes on your end. I'm always here to help you in creating your employee's paycheck.
If Holiday hours are entered into QB as regular wage pay as suggested, wont those hours get accrued vacation hours attached to them as well? Holiday hours are not worked therefore they shouldn't get counted and accrued with vacation hours. Does Quickbooks know the difference or is there a way for the system not to count Holiday hours as accrued time off?
Hi there, @kwindous.
Thank you for the quick response. I'd be glad to help you get this sorted.
Yes, you're correct. If you set the Holiday hours payroll item as Regular Pay, it'll accrue the vacation hours.
If you don't want time accrued when paying holiday pay, you can check the Do not accrue sick/vac box on the Preview Paycheck window. Allow me to walk you through.
I've included some articles and screenshot for additional reference:
For additional help, feel free to reach out to Payroll Support. Our phone agents will be able to assist you in getting this resolved.
That should get you back on track.
Please don't hesitate to let me know if I can be of further assistance about setting up the holiday pay. Wishing you and your business continued success.