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HilaryNaylor
Level 2

Deductions for sick pay and lateness

How do you adjust payroll when an employee has a day or half day sick and requires a deduction in pay? 

Solved
Best answer September 22, 2020

Accepted Solutions
John C
QuickBooks Team

Deductions for sick pay and lateness

Hi HilaryNaylor Which payroll system are you using, the standard or advanced product?

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HilaryNaylor
Level 2

Deductions for sick pay and lateness

9 REPLIES 9
John C
QuickBooks Team

Deductions for sick pay and lateness

Hi HilaryNaylor Which payroll system are you using, the standard or advanced product?

HilaryNaylor
Level 2

Deductions for sick pay and lateness

Advanced

GeorgiaC
QuickBooks Team

Deductions for sick pay and lateness

Hi Hilary,

 

Thanks for confirming - if you haven't already, you can create a leave category for the sick pay and then add this when running the payroll by clicking into the employee and selecting Actions > Take leave.

 

 

If you're not looking to track this as leave and simply want to make a deduction to the pay, you could create a deduction category instead (Payroll settings > Deduction Categories > Add), which you can then add when running the payroll by selecting Actions > Make a deduction - this will add a deduction line where you can select the appropriate deduction category and enter the amount to deduct. 

 

Please get back to us below if you have any Q's!

 

HilaryNaylor
Level 2

Deductions for sick pay and lateness

That's really helpful thanks.

 

John C
QuickBooks Team

Deductions for sick pay and lateness

Hi Hilary You're welcome, if you need further assistance please let us know and we'd be glad to help you.:thinking_face:

HilaryNaylor
Level 2

Deductions for sick pay and lateness

Actually, is there a way to import sickness/deductions - we record it in a separate absence management tool and can export the information.  

GeorgiaC
QuickBooks Team

Deductions for sick pay and lateness

Hi Hilary, 

 

Thanks for getting back to us - unfortunately, it's not possible to import this information, this will need to be entered on the payroll system itself. :) 

HilaryNaylor
Level 2

Deductions for sick pay and lateness

No problem, sure I can work round this.  Assume the same is true for overtime - paying extra as an exception.

GeorgiaC
QuickBooks Team

Deductions for sick pay and lateness

Hi Hilary,

 

That's right, it's a similar procedure to above, you can create a pay category for overtime by going to Payroll Settings > Pay categories > Add - here, you can enter the name (how it will appear on the payslip) and the terms. If you want to enter a fixed hourly rate for this, you can do so by going into the individual Employee's settings > Pay rates.

 

Once you're ready to use this, click into the employee when running the payroll and select Actions > Add earnings > Select the appropriate category on the earnings line.

 

Get back to us if you have any questions :hugging_face:

 

 

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