A full-time employee took 6 unpaid days off because they were out of vacation time. How do I account for this in payroll?

Thanks for reaching out to the Community, @joy51. 

I'm here to share information about the unpaid time off option in QuickBooks Online Payroll (QBOP). 

You can set up and track your employees' time in QuickBooks Online Payroll. You must first set up time-off policies, such as paid or unpaid time, sick pay, and vacation pay.

To give an employee unpaid time off, you can follow these steps: 

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, select Start or Edit.
4. Scroll down to the Time off policies section. 
5. Select Unpaid time off, and enter the current balance. 
6. If you want to change the policy, select Edit ✎. 
7. Select the dropdown arrow to choose how the hours are accrued, then select Save.
8. When finished, select Save. 

For further details on how it works in QBO, you can check out this article: Set up and track time off in payroll. 

Visit us again if you need further assistance while working with the accrued vacation and sick time. I'll be here to help. 

Ok. So I set this up with a number of hours per year that can be accrued as unpaid. When I run payroll, I should then have a spot open for this employee to put in 48hrs unpaid and this will be deducted from his paycheck. Correct?

Thank you for getting back to us, @joy51.

I can share some information about unpaid time off in running your payroll. 

Yes, you're correct! When you run payroll after setting up an employee an unpaid time off, you can now enter the number of hours under the Unpaid time off column. 

For more information about adding unpaid time off hours to your employee's profile, check out this article: Set up and track time off in payroll. Then, here's how you can send a scheduled or unscheduled payroll through direct deposit or paper paychecks in QuickBooks Online: Create and run your payroll.

You may also consider running your payroll automatically to save time running payroll each payday. Check out this article on how to set up your employees and turn on Auto Payroll: Set up Auto Payroll to pay your employees in QuickBooks Online Payroll. 

Let me know how I can further assist you when running your payroll and adding unpaid time off, by leaving a reply below. Have a great rest of the day!

How does this time actually get deducted from the paycheck? I see the unpaid time off is accounted for, but the employee still got paid the time they did not have accrued. 

We appreciate you for joining this thread, @lkf007.

Let me share insights about setting up unpaid time off.

Most scenarios like this result from an incorrect unpaid time off being set up. With that in mind, I recommend reviewing it. You can also utilize these steps to guide you on how to set up unpaid time correctly. 

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.

Here's how:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, select Start or Edit.
4. Scroll down to the Time Off Policies section. From the Paid time off, Unpaid time off, Sick Pay, or Vacation Pay ▼ dropdown, select Add new [time off pay] policy.
5. Complete the on-screen fields to create your policy, then select Save.
6. When finished, select Save.

For more details, check out this article: Set up and track time off in payroll.

If the error persists, I suggest talking to the QuickBooks Online Payroll (QBOP) Care team. They can pull up your account in a safe environment, review the setup of your unpaid time off then help you fix it.

You might want to manage and update your pay schedules. Feel free to read this article: Set up and manage payroll schedules.

If you have additional questions about managing your Time Off policies, never hesitate to return here. I'll be willing to lend a hand. Have a good one.

I did all as follows:

Set up unpaid time off policy for each employee. I set the amount to 100 hours for the year of Unpaid Time Off.

Tell me if I'm correct... when an employee is out of PTO and requests 8 hours of unpaid time off, QBO is going to automatically calculate the unpaid amount? Does it create that amount based on hourly rate of 40 hours a week? How does QBO know what to deduct is my question? 

In this case, do I need to go into payroll to adjust anything or will QBO automatically deduct the amount in the next pay check?

Thanks!

I followed the steps:

Created an unpaid time off policy, set the hours to 100 max for the year, restart on anniversary date.

How does QBO know how much to deduct from the paycheck? Is it based on 40 hours divided by salary to get an hourly rate, then deducts that amount (for the number of unpaid time off)?

Once I approve the unpaid time off, do I need to change anything in QBO payroll? Or will it automatically take the hours off and put in the category on the pay stub "unpaid time off"?

I have all employees on automatic payroll.

I'm here to provide details on how the unpaid time off policy is calculated in QuickBooks Online Payroll (QBOP) so you can track your employees' benefits accordingly, Ben.

Yes, QuickBooks automatically computes the unpaid time off amount (depending on how you set it up in the system or how it will accrue) and categorizes it when you run your payroll, so you don't need to adjust your settings.

To get the hourly rate of your salaried employee, we based it on the number of payouts in a year. For example, your payroll schedule is weekly, we expect to have 52 payouts. We'll have to divide the yearly compensation over it. Then, divide the answer by number of hours work in a week (40 hours). 

The formula to get the unpaid time off amount should look like this: Yearly compensation / Number of payouts in a year / Hours worked in a week.

Now that we've figured out how time offs are calculated, create and run your payroll to pay your employees on time.

Feel free to reach out to us again if you have additional questions about time off policy calculation. We'd be delighted to provide the help you need.

In practice, how is this time taken out of the paycheck? Although the unpaid time off seems to be accounted for, the employee was compensated for the time they did not accumulate. Provident Botanico