cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
liruzun
Level 1

Union Workers Canada - Vacation Pay & Deductions

Hello,

 

I have a question about QBOP. The Union we are working with requires us to include vacation pay on every paycheck, so that the taxes are calculated on their salary + vacation (we run weekly paychecks). This vacation is not paid to the employee, but to the union directly on a monthly basis.

 

I have already selected vacation pay paid out at the end of each period. However, I am running into two issues:
1. This vacation is not paid to them, so I have to deduct it after taxes are calculated, and as of now, I haven't found a way for QB to automatically calculate this deduction for me.

2. The most important one: Some other deductions are a % of their gross earnings, EXCLUDING the vacation pay. Since the vacation pay is considered part of their salary, the system is doing the calculations including vacation pay. For example, if an employee earns $100, + $10 of vacation pay, the deduction should be 3% of $100 and not $110.

Has anyone found a way to make this happen? I am not sure if I am missing something on how QBO works or it's just a system limitation.

 

Thank you.

3 Comments 3
Trish_T
QuickBooks Team

Union Workers Canada - Vacation Pay & Deductions

Hi liruzun,

 

Understanding supported pay types in QuickBooks Online Payroll, simplifies your work when setting up employees.  When setting up vacation pay to be submitted directly to the Union, it can be a little tricky.  For this reason, the best course of action is to speak with an accounting professional.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area. 

 

If you have any other questions, feel free to reach back out. We would be glad to help! 

liruzun
Level 1

Union Workers Canada - Vacation Pay & Deductions

Hello,

 

I work as an accountant. I just don't seem to find the way to accomplish what I mentioned before in Quickbooks Online. We were using a different payroll system in the past, so more than accounting advice I would need to know if there is a way to do what I asked within QBO Payroll

Trish_T
QuickBooks Team

Union Workers Canada - Vacation Pay & Deductions

Hi liruzun,

 

In QuickBooks Online Payroll, the calculations would not be automatically applied.  Although you can create a union deduction/contribution, you would need to calculate the vacation accrual to pay, then manually adjust the vacation balance each pay run.  If you're uncertain as to how to proceed, I recommend speaking with an associate for their expertise.  

 

If you would like to see this come available in future updates and feature enhancements, please don't hesitate to submit a suggestion to our Development Team.

 

Please don't hesitate to touch base with us again, should you have any other questions.  We would be happy to assist!

Need to get in touch?

Contact us