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Level 1

I need help with employee vacation set up

Hello everyone,

If I have a salaried employee earning $30K per year and they're paid on the 15th and 30th of each month, how would I set up the vacation section of the employee set up if the vacation policy is two weeks vacation? I really need some help because I can't figure it out. : (


Thanks in advance

1 Comment
Level 7

I need help with employee vacation set up

Hey Candice_Bolden,


Setting up vacation policies is a crucial part of setting up payroll in QuickBooks Online, as it ensures you'll be able to track your employee's accruals automatically. Our payroll systems are designed to give you control over your own books, so there are several options available for each of your employees. I'll be happy to help you set this up. 


There are a few ways to indicate that an employee accrues two weeks of vacation every year in QuickBooks Online Standard Payroll. For most businesses, this adds up to 80 hours of vacation per year. Since you seem to have a solid grasp on how to select a policy, here's a brief overview of your options:

  • At beginning of year: Choose this one if your employee accrues the full two weeks on January first of each year. 
  • Each pay period: This is common for salaried employees who accrue a fixed number of hours each pay cheque. The system will divide the hours equally between all pay periods. 
  • Per hour worked: Often used for hourly employees, you can enter 0.04 to accrue 4% of the hours your employee is paid.
  • On anniversary date: If your employee accrues vacation as a lump sum on the date they started employment for your company.  

If your employee works 40 hours each week, you can enter 80 hours each pay period to increase their vacation every time you run a payroll. 


If you're subscribed to Advanced Payroll Powered by WagePoint, simply select Accrue each pay period in the employee's profile. A rate of 4% adds up to two weeks. 


I'm confident you'll have no problem getting this set up. Let me know if you have any additional questions!