When an employee takes annual leave, do the ordinary hours remain the same or should it be reduced? (the amount paid looks correct)

Hi elisabeth,

Thanks for posting in the Community!

If you wanted to reduce or remain the hours to pay in an employee's ordinary hours when paying annual leave, you'll have to check the payment set up for the annual leave category. The payment set up selected affects how your annual leave category is calculated. Here's how to check:

1. Click on the Payroll tab.
2. Click on Leave categories.
3. Click on the Annual leave category.
4. Locate the Payment set up and verify if you have set it to Basic or Custom.
5. You can change it to Custom and set Deduct hours from to Don't deduct hours and set the Transfer hours to Annual Leave taken, click on Save.

Then, go back to your pay run and recalculate them after making changes by clicking on Actions and click on Recalculate.

To learn more about the Payment set up in a leave category check this link and go to Need help with payment set up: How to Add Leave Categories in QuickBooks Payroll.

Post again in the Community if you have further concerns about your leave category. I'll be around to assist you.