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How do you clear both positive and negative vacation accruals for inactive employees?

Some employees quit while in a negative accrual position. Some were incorrectly over accruing so did not  receive a full vacation payout upon resigning and still have a positive balance. How  can these be cleared from the e Vacation Summary, Accrual liability account and expense account?

4 Comments
QuickBooks Team

Hey there ryan.murphy, Thank you for giving me the opport...

Hey there ryan.murphy,

Thank you for giving me the opportunity to help you. 

What is the accrual rate for these employees? If it's higher than 4%, then you'll have to create a payroll deduction item and used it when creating paycheques to correct the hours and amount. 

Here's how to create a deduction item: 

  1. Go to List menu at the top menu bar, and choose Payroll Item List.
  2. Click the drop-down for Payroll Item, then select New.
  3. Select Deductionthen click Next.
  4. Enter a name for the deduction (e.g. Vacation Accrual Adjustment).
  5. Leave the Enter name of agency to which liability is paid, and enter the number that identifies you to the agency fields blank.
  6. From the Liability Account drop-down, select the Expense account that is used on the Vacation Accrual payroll item, then click Next.
  7. From the Tax tracking type screen, choose Box 14/A - Employment Income, then click Next.
  8. From the Taxes screen, select all the taxes, then click Next.
  9. On the Calculate based on quantity screen, choose Neither, then click Next.
  10. Select whether to calculate on gross pay or net pay, then click Next.
  11. Leave the Default Rate and Limit fields blank, then click Finish.

Next create a paycheque for the employee. Please follow these steps:

  1. Go to Employees at the to menu bar.
  2. Select Pay Employees, and click Unscheduled Payroll.
  3. Select the employee you're working on, and click Open Paycheque Detail.
  4. In the Earnings section, remove Salary or Hourly from Item Name.
  5. Choose VacPay - Accrual Paid Out.
  6. Enter the amount of the over calculation.
  7. In the Other Payroll Items section, select the Payroll Deduction (Vacation Accrual Adjustment), and enter the same amount as the VacPay Accrual Paid Out.
  8. Click Save & Close. This will create a 0.00 amount on the cheque and the amount will decrease.

In regards to employees whose accruing negative hours, we'll have to double check their payroll setup. Since security of your account is our priority, I suggest you contact us. Our Payroll Support Team can look into your account and investigate this further.

You can find our updated phone number here: 

  1. In your browser, navigate to: https://help.quickbooks.intuit.com/en_CA/contact
  2. Choose your QuickBooks Product.
  3. In the Contact Us page, click Payroll and the issue.
  4. In the Here's how to connect with a QuickBooks expert about Pay sectionclick the Green Phone button to see the support number.

If you're trying to correct or adjust your employee's vacation pay, check out this article: Set up vacation pay and accrual

If you have any questions about payroll, don't hesitate to let me know. I'll assist you as best as I can.
Not applicable

Thanks for your help! The steps worked perfectly and clea...

Thanks for your help! The steps worked perfectly and cleared all the employees with positive vacation accrual balances.

As far as the other employees, they are not "accruing" negative vacation, they were just over paid vacation upon leaving so now there is a negative balance for them in the vacation accrual summary page. Any ideas on how to remove the negative balance?

Thanks
QuickBooks Team

Hello again, ryan.murphy. Glad everything worked out well...

Hello again, ryan.murphy.
Glad everything worked out well! I'm sure this would help out other users who are experiencing the same issue.

We'll have to thoroughly check your employee's vacation accrual. Since we don't want your account displayed in  public, I recommend contacting us.

One of our Payroll Support agents will perform a screenshare session to remove the negative balance. The updated phone number can be found here:

1. In your browser, navigate to: <a rel="nofollow" target="_blank" href="https://help.quickbooks.intuit.com/en_CA/contact">https://help.quickbooks.intuit.com/en_CA/contact</...>
2. Choose your QuickBooks Product.
3. In the Contact Us page, click Payroll and the issue.
4. In the Here's how to connect with a QuickBooks expert about Pay section, click the Green Phone button to see the support number.

Thanks again for reaching out to us. Feel free to visit the Community if you have any questions. We're always here to help.
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Just a note for those who are in a province where vacatio...

Just a note for those who are in a province where vacation pay is accrued on vacation pay paid out (as is the case in Saskatchewan where I work) - the item you create cannot be deduction item but rather should be an addition item (where you will manually enter a negative number).  Reason being is that Deduction items are not in the list of items upon which you can check to accrue vacation pay.  So the procedure described above, will create another Vacation accrual, but only on the VacPay - Accrual Paid out item.  Since you want the entire transaction to be 0.00, the only way to get an offsetting vacation accrual amount for the adjustment, is to enter the adjustment payroll item as an Addition.