Add leave categories in QuickBooks Advanced Payroll and Bureau Payroll

1. Follow this link to complete the steps in product
2. Go to Payroll settings and then select Pay Categories.
3. Select Add to create a new leave category, or choose an existing one to edit.
4. Enter a Name for the category.
5. (Optional) Enter an External ID if you use an external system for leave or timesheets.
6. Choose a Leave category type from the dropdown.
7. Decide if the leave balance should be Tracked or Not tracked.
   • Use Not tracked for types like unpaid leave.
   • If you select Tracked and Automatically accrues, follow the steps in the section below to set this up. Tip: For leave types that don’t usually accrue (like unpaid leave), set the balance to Not tracked. This way, QuickBooks won’t keep a running balance for that leave type.
8. (Optional) Tick Hide leave category name from employee view if you don’t want employees to see the category name.
9. Choose a Unit type (weeks, days, or hours).
10. Select the appropriate Payment setup (see below).
11. Select Save.

Payment setup controls how leave payments appear on pay runs:

Basic

• No timesheets: Leave balance reduces, earnings remain unaffected.
• With timesheets: An earnings line is created and the leave balance is reduced.

Don’t pay for leave taken

• No timesheets: A negative hours line reduces earnings.
• With timesheets: No earnings line is created.

Report earnings against another pay category

• Use for reporting or journaling purposes.
• Earnings are assigned to the specified pay category and can use the rate from the employee’s main pay category.

Custom (advanced)

• Deduct hours from one pay category and transfer them to another when leave is taken.

If you choose Automatically accrues for a leave category, follow these steps:

1. Decide if leave accrues ongoing or based on the employee’s leave year.
   • If based on leave year, set the start date in the employee’s Leave allowances.
2. (Optional) Select Exclude from termination payout.
3. (Optional) Tick Apply negative balances on termination if you want negative balances deducted from final pay.
4. Choose whether to:
   • Hide accruals from payslips.
   • Hide balances from payslips and employee portal.
   • Hide category name from employee view (only dates will show in their calendar).
5. Under Standard allowance, set how leave accrues:
   • Hours per hour worked or Hours per pay run.
   • For leave in days: enter Standard days per year (recommended) or Standard weeks per year.
   • Use the Calculator icon to check entitlements.
6. If accruing based on the employee’s leave year, choose:
   • Accrue in advance – the full yearly entitlement is added in the first pay run.
   • Carry over – either all or a set number of hours.
7. Decide if accruals are limited or unlimited.