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Can overtime hours be used to increase vacation accruals? Employee has negative vacation and wants to work extra to cover this.

 
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Can overtime hours be used to increase vacation accruals? Employee has negative vacation and wants to work extra to cover this.

Hey keith32, 

 

Keeping track of vacation accruals is a crucial part of running payroll, and ensures you'll always know how much your employees are entitled to. The payroll solutions offered in QuickBooks Online make this easy by giving you full control over vacation policies. I'm confident we'll have no problem setting these policies up to accrue on overtime, and I'm here to guide you through it. 

 

If you're unsure whether overtime earns vacation in your province, check out this great article: Supported pay types and deductions explained

 

QuickBooks Online Standard Payroll is built with a focus on customization. As long as your employee is set up with a policy that accrues Per hour worked, vacation hours will accrue at the set rate on overtime. You can verify the accruals in just a few easy steps:

  1. Head to your Employees tab and click on the employee's name.
  2. Click Edit employee then scroll to section 5 for their vacation policy.
  3. If you see something like 0.04 hours/hour worked, overtime hours entered when running payroll will count towards accruals. Otherwise, select Add new from the dropdown to set it up. 

You can also update your employee's balance directly from this section of their profile.

 

Advanced Payroll Powered by WagePoint is designed with powerful automation to deliver a stress-free payroll experience. Vacation is accrued on each dollar owned using the rate set in the employee's profile, so you can rest assured it will calculate correctly. If you need to adjust current accruals, don't hesitate to reach out to our payroll expert team using one of the methods below. They'll be able to get the amounts updated. 

 

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