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Setting up vacation pay for your employee depends on the type of Vacation policy you use in your payroll settings.
In QuickBooks Online Payroll, the Accrued vacation policy is commonly applied for both salaried employees and full-time hourly employees. This policy allows you to track vacation pay based on their accrued vacation balance.
When the employee works, they earn regular wages, and when they take time off, vacation pay is deducted from their accrued balance. QuickBooks automatically assigns a default vacation rate percentage based on provincial requirements, but this can be adjusted to fit your company’s policies.
However, if you’re unsure which rate applies, we recommend consulting a tax advisor or payroll expert for assistance. You can also edit the vacation dollar balance in QuickBooks as needed for accurate tracking.
Once you’ve determined the Vacation policy for your employee, here’s how to set it up:
- Navigate to the All apps menu, click Employees under the Payroll dropdown.
- Select an employee to edit their information.
- In the Time Off tile, click Edit.
- Choose the preferred method from the Vacation Policy drop-down menu.
- Complete the required fields and click Save.
You can also check out this article for more details about the process:
Vacation policies for QuickBooks Online Payroll.
Feel free to share any additional questions or concerns in the comments section below.
