Accrued Vacation Pay

Hi there, ruffleswest. 

QuickBooks will deduct the vacation pay within the pay period you used in the paycheck. It also calculates based on the rate an hours entered. 

We can manually change the accrual and rate while the option to set rates on the employee's vacation/pay information is unavailable. I'll send this as feedback to our engineers to have ways on how to calculate accruals with salaried employees. 

Let me show you how to modify the employees accruals: 

1. Go to the Employees menu and click Employee Center.
2. Double-click on the employees name. 
3. Go to the Payroll Info and click the Sick/Vacation button. 
4. Modify the hours under the Vacation section and click OK and then OK again. 

When you'll run payroll, you can change the Rate on the employee's paycheck when they took on leave.

If you need more help, please let me know!

Thank you for your reply...but your "work around" solution is one that is prone to miscalculation due to human error and is not ideal.    If you have to do that for 50+ employees every pay period...it will not be done correctly...guaranteed!   Please have your engineers figure out a way that this can be done so that it can be calculated automatically.  Cheers.

Hello @ruffleswest,

I want to let you know that your voice matters and I'm taking notes of your feedback and submitting it directly to our product engineers. As of this time, you can consider the workaround shared by my colleague, @Catherine_B, you can manually calculate your employee's accrued vacation pay.

For future product updates, you can always visit the following links below for reference:

• QuickBooks Resource Center
• Firm of the Future

Fill me in if you have further questions. I'm always around if you need any help.

Again the manually adjustments are not practical...so we will just continue to do what we have been doing...which is also not ideal...but is better that what is currently offered....but it is good to know that the feedback is being sent to the engineers.   If I can provide a suggestion for any solution the engineers might come up with (or can incorporate).  If we take the example employee already discussed ($60,000 annual salary , 6% vac)....his actual hourly rate can be one of two different options...and as such there should be an option to allow for that hourly rate to be changed...both on the accrual side and the timesheet submission side.  If you take the standard formula for working hours in a year (8hrs x 5 days x 52 weeks) you get 2080 working hours over the course of the year...so the hourly rate would be $28.8461 (60,000/2080)...however some companies (like mine) use a different calculation to get the total number of hours worked in a year  (365/7 x 8 x 5 = 2085.714)  this takes into consideration that we have 365 days of the year and not 364 (7x 52) (leap years aside).  With the second calculation the hourly rate is $28.7671.  A slight difference...but a difference non the less.  Also some companies may only pay 1950 hours per year (7.5 x 5 x 52)...so whatever they can come up with...their needs to be flexibility for each employeer to set their own parameters based on how they calculate their payroll.