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Set up and track time off in payroll

SOLVEDby QuickBooksQuickBooks Online Payroll4Updated 3 weeks ago

Learn how to set up and track time off, vacation, and sick pay for your employees.

With QuickBooks Online Payroll, QuickBooks Desktop, and Intuit Online Payroll, you can set up and track the time your employees take. First, you’ll set up time-off policies like paid or unpaid time off, sick pay, and vacation pay. If you need to, you can add time off at any point if someone needs more.

Note: If your account integrates with QuickBooks Time, you can set up your time off policies there to match what you set up in your payroll account. You and your team members can track time off using QuickBooks Time, which will sync back to payroll.

How to set up time off in payroll

Before any of your employees can take time off, you first need to set up a time off policy. Set up vacation or sick pay with these steps for your version of payroll.

Note: Not sure which payroll service you have? Here's how to find your payroll service.
  1. Go to the Payroll, then select Employees.
  2. Select employee’s name.
  3. In the Pay section, select Edit ✎.
  4. Under How much do you pay [employee]?, select Edit ✎.
  5. Under You can also pay [employee], select Unpaid time off and/or Sick pay.
  6. Select the appropriate policies for Unpaid time off and/or Sick pay from the respective drop-down menus or you can create new policies.
  7. If you select create new policy, complete the on-screen fields to create your policy
  8. Select OK then Done.

How to change your time off policy

Need to update your existing policy? Be sure to update your payroll.

Edit your policy with:

  1. Go to the Payroll menu, then select Employees.
  2. Select employee’s name.
  3. In the Pay section, select Edit ✎.
  4. Under How much do you pay [employee]?, select Edit ✎.
  5. Under You can also pay [employee], select Edit ✎ to make changes to the Unpaid time off and/or Sick pay policy, then select OK
  6. Select Done.

How to add paid or unpaid time off

Need to give an employee more time off? Here's how to add more time.

  1. Go to the Payroll menu, then select Employees.
  2. Select the name of the employee.
  3. In the Pay section, select Edit ✎.
  4. In the How much do you pay [employee]? section, select Edit ✎.
  5. For unpaid time off, enter the current balance, or to change the policy, select Edit ✎.
  6. If you select to edit the policy, under Hours are accrued, select the required option from the ▼ dropdown menu.
  7. In the Hours per year field, add the hours to be accrued for the year. You can also set the maximum hours that can be accrued (optional).
  8. Select OK then Done.
  9. For Sick pay, enter the current balance, or to change the policy, select Edit ✎.
  10. If you select to edit the policy, under Hours are accrued, select the required option from the ▼ dropdown menu.
  11. In the Hours per year field, add the hours to be accrued for the year. You can also set the maximum hours that can be accrued (optional).
  12. Select OK then Done.
  1. Select Employees, then Employee Centre.
  2. Select the employee name.
  3. Select Payroll Info, then select Vacation Pay for [Employee Name].
  4. Enter the amount that is currently available for the employee in the Pay ($) available as of mm/dd/yyyy field and select OK. Note: This is the total amount of pay available as of the date you add vacation to the employee profile.
  5. Select Accrual Hours for [Employee name].
  6. Enter the number of hours that are currently available for the employee in the Hours available as of mm/dd/yyyy field. Note: This is the total amount of hours available as of the date you add sick to the employee profile.
  7. Select the Accrual period ▼ dropdown menu and choose one of the four accrual periods for sick time listed above.
  8. In the Hours Accrued field, enter the number of hours that will be accrued (based on your selection in step 6).
  9. (Optional) In the Maximum number of hours field, enter the maximum balance of sick hours that the employee can have.
  10. If you do not allow hours to roll over to the next year, select “Reset hours each new year?”.
  11. Enter the start date of the accrual year.
    1. Note: Use January 1 for calendar year or hire date if accrual happens on an employee's anniversary date.
  12. Enter the date that sick time should begin accruing.
  13. Select OK to record your changes.

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