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Set up and configure time off accruals in QuickBooks Time

by Intuit• Updated 2 months ago

Learn how to set up and configure time off accruals in QuickBooks Time. 

If you haven’t already, make sure you first set up and configure your time off codes and preferences. Only admins can set up and manage time off accruals.

Learn how to: 

Set up time off accruals

Company wide accruals

Note: Any team member with personalised accrual rules will not be assigned the company accrual settings. If these need to be changed, go to individual team member accruals. 

  1. Go to Feature Add-ons and select Time Off Codes.
  2. Next to the time off code you want to edit, select the edit icon Image of the edit icon..
  3. Check Track Accruals, then select Edit Settings.
  4. From the Accrual Settings ▼ dropdown, select one of the following:
    • None: No automatic accruals are set up and there isn't a bank of hours to add to.
    • Manual: No automatic accruals are set up, but hours can be added through the Accrual Ledger.
    • Yearly: Adds a lump sum of time to the assigned team member’s balance.
    • Every Pay Period: A set amount of hours accrue at the end of each pay period.
    • Based on Hours Worked: Determines how many hours to accrue based on how many hours an individual team member has worked by the end of a pay period.
      • For accruals based on hours worked, projected hours per week defaults to 40 hours. Team members can enter time off requests based on the 40 hour work week, but if they don't work enough hours to fulfill that request, it remains in a pending state until cancelled or fixed. 
  5. Fill out additional time off accrual settings you need, then select Apply.

Individual team member accruals

  1. Go to My Team.
  2. Select the team member, then Time Off.
  3. In the Accruals column, select the accrual type next to the time off code.
  4. In the Accrual Settings ▼ dropdown, select the accrual type you want to apply to the team member. 
  5. Fill out additional time off accrual settings you need, then select Apply. Select Save.

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Understand time off accrual settings

When you’re selecting your specific accrual type in the company wide settings or for an individual team member, there are additional settings you may need to set.

  • For the Accruals that will take place X day(s) after the end of each pay period, 5 days is recommended.
    • This buffer allows for timesheet adjustments before time off accruals are calculated based on those timesheets.
  • Note: If you need to edit these settings, wait until the pay period ends. Otherwise, you could duplicate or prevent accruals for that pay period. 
  • Yearly: Accrues X hours per year.
  • Every Pay Period: Accrue X hours per year or per pay period.
    • The system automatically calculates how much team members get each pay period if per year is selected.
    • For example, 30 hours a year on bi-weekly pay periods (26) = 1.15 hours per pay period.
  • Based on Hours Worked: Accrue X hours per X hours worked.
    • Accrues at the end of each pay period. 
    • This accrues fractions of time. For example, 1hour per 40 hours worked would mean they’d get 0.5 hours if they only worked 20 hrs.

Note: If you enter time off as a decimal and it doesn’t convert to a HH:MM format, the time displayed may not match the time accrued.

Reset balance based on hire date or calendar date.

Note: This is always January 1 for the Based on Hours Worked option. 

  • Hire date or calendar date. 
  • You must set up the accrual date setting before the date occurs in order for the team member to receive their balance. Otherwise, you must manually add the balance.
  • This is a one-time setting, and only exists in the individual accrual settings for a team member.
  • This is a one-time setting, and only exists in the individual accrual settings for a team member.
  • The date indicated must be at least 1 day in the future for these hours to be added. Balance updates are also not retroactive.
  • Yearly option only.
    • Allows the team member to use their current time off balance to add time to the next accrual year.
  • Stops accruals up to the entered value (0 means no limit).
  • Allows a team member to enter in more time off than they might have in their balance.
  • Accruing time will cancel out any negative time to bring it to 0 before beginning the positive balance additions.

Note: If you turn on “Use it or lose it” and a team member has a negative balance, the negative balance will carry over to the next year and reduce the total amount of hours granted.

  • Their balance will accrue hours assuming they have worked 40 hours a week.
  • If their accruals need to be based on the hours they actually worked, they’ll need to be set up as non-salaried in My Team.

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Add or adjust team member time off balances

For one team member

  1. Go to Time Off and select Accruals and Balances.
  2. Select the name of the team member that displays, then select the desired team member, and select Continue.
  3. Select a Time Off Code.
  4. Use the Description column to add a reason for the adjustment.
    • Then, enter a number in the Hours +/- column.
  5. Select Save.

For multiple team members

  1. Go to Feature Add-ons and select Time Off Codes. 
  2. Select Actions ▼ dropdown, then Download Time Off Balances.
  3. Open the spreadsheet.
  4. In the appropriate column(s), add or change the hours, and save the spreadsheet.
  5. Go back to Actions ▼ dropdown, and select Upload New Balances.
  6. In the Import Time Off Balances window, if you are changing balances, select the Replace Balances (instead of adding to existing balances, replace them) checkbox. Leave it unchecked if you are adding the spreadsheet numbers to their current balances.
  7. Select Choose File, navigate to the file, and select Open.
  8. Select Import. A list of the changes displays.

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View a spreadsheet of accrual settings

  1. Go to Feature Add-ons and select Time Off Codes.
  2. Next to the time off code for which you want to download a spreadsheet, select the edit icon Image of the edit icon. and Download.

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Update accrual settings via spreadsheet

  1. Go to Feature Add-ons and select Time Off Codes.
  2. Next to the time off code you want to update accrual settings for, select the edit icon Image of the edit icon. then Download.
  3. Open the spreadsheet, make any adjustments, and save the file as a .csv.
    1. Go to the Help tab to review format requirements and to make sure your data is entered correctly.
  4. Back in the Time Off Code accrual settings window, select Upload settings.
  5. Select Choose File, navigate to the .csv file, select the file, and then Open.
  6. Select the checkbox next to Test Mode (show what would have been imported/changed), then Import to run a test import and catch any potential errors.
    1. If there are any errors in the file, you’ll see what lines would’ve failed. See Troubleshoot CSV import errors in QuickBooks Time for help to correct these errors.
  7. Once you’ve corrected any errors in your CSV, upload your file again, uncheck Test Mode, and Import.

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Send an anniversary reminder (PTO Adjustment Reminder) email to admins and managers

This feature allows you to select recipients for a monthly recurring email. The email includes a report of team members who are approaching the anniversary of their hire date and what their current accrual settings are.

This is the best way for administrators and managers to proactively manage who may need changes made to their accrual settings as they approach set years of employment.

  1. Go to Feature Add-ons and select Time Off Codes.
  2. Select Actions ▼ dropdown, then Set Accrual Reminders.
  3. Select the option next to Who should get these reminders? to select who receives the monthly reminder.
  4. Select OK, then Save.

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