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How to payout employee vacation ?

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QuickBooks Team

How to payout employee vacation ?

Hi there, 


I'm happy to hear from you again. I hope you were able to set up your direct deposit with ease. I'll be glad to show you how to pay out employee vacation. 


To do this you’ll have to enter the employees accrued hours when you create their paycheques. And then, the total vacation hours will be deducted.

If you have not setup the vacation pay. Here’s how:

  1. Click on the Gear icon.
  2. Click on Payroll Settings.
  3. Click the Vacation/Sick/PTO link below the Payroll and Services section.
  4. In the Vacation and Sick Leave Policies box, click Create.
  5. In the Category drop-down, select Vacation, enter a Description, select the Accrual Frequency, and then enter the Hours earned per year and the Maximum available hours.
  6. Click OK.

Then run the payroll, paying the accrued vacation:


  1. Click on Employees tab.
  2. Click Run Payroll.
  3. Enter all other pay types and the vacation hours.
  4. Select Preview payroll and make sure to review vacation hours.
  5. Click on Submit payroll.

To learn more about vacation pay, here are a few helpful article:

Give this a try and if you need further assistance, I recommend contacting our support team using this link.

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