Vacation Pay - Create Items

Welcome to the Community space, @GroundBreakers. There's an action you'll need to consider before we can achieve your goal. I'll share this with you before proceeding to how you can add another vacation pay item.

QuickBooks Desktop (QBDT) has a default vacation item that's used to correctly accrue your employee and reflect it on the payroll report. You can, however, create another pay item, but the system will not properly accrue nor recognize it as vacation pay on the report. 

As a workaround, you can continue adding your vacation pay types as another pay item and assign it to the employee. When you run payroll, manually calculate the amount and enter it in your employee's paycheque. Take note that this isn't the same as vacation time. 

I'll also share this article if you wish to set a sick maximum accrual limit for your employees: Understand sick pay accrual limits in QuickBooks Desktop Payroll.

Feel free to return here if you have additional questions about managing your employee's vacation pay items. We'll ensure to assist you promptly.

Thank you for your reply. This answers my suspicions about the limits of this feature and I truly appreciate it.

Unfortunately I cannot manually adjust 100 paycheques every pay period with any efficiency or accuracy.

The current vacation rate paid out or accrued is determined by the detail I input in to each employee file, along with the hourly wage and benefit deductions. Is there any way to show this detail on the paycheques automatically? Right now everyone, regardless of their individual rate, sees the text block "vacation pay". I know it is possible as the calculation is being done automatically but I understand if current QB coding does not allow it to be displayed.

Thank you again.

Thank you for your prompt reply, @GroundBreakers. Let me add some information about adding vacation pay types for your employees.

To display the pay type details of the vacation pay item you've created, you need to assign it to the respective employee. This will allow the item to be automatically reflected on the paycheque. However, as mentioned by my colleague above, you will need to manually calculate the amount and enter it there.

In the meantime, we encourage you to submit feedback regarding this feature. Your input is valuable and can help us improve the experience for all users.

Here's how:

1. Navigate to the Help option.
2. Select the Send Feedback Online option.
3. Select the Product Suggestion option.
   
4. Enter your feedback suggestion.
5. Click the Send Feedback button to send.
   

Additionally, I’ll share this article for your reference on how to print your paychecks in QuickBooks Desktop: Print pay cheques and pay stubs in QuickBooks Payroll.

If you need further assistance on how to manage your employees you can always return to this thread. I'll keep my notification on. Have a great day.