Calculate PTO for commission employees

You're unable to add PTO hours for commission-based employees, which is why the Time off pay policies section is greyed out, americanm1. I can share a workaround to ensure the correct calculation of their earnings and the value you pay.

Paid time off indicates employees will receive pay whenever they're not working. It encompasses maternity leave, sick days, and various other leave types. Therefore, this policy applies only to salaried and hourly employees.

In the meantime, you can switch the Pay type to Hourly and establish a separate pay type for the Commission. It enables entering the PTO in the Time off pay policies section. Here's how to do that:

1. On the left panel, go to the Payroll menu and hover your mouse over Employees.
2. Scroll down to Pay types and select Edit.
3. In the Pay type field, choose Hourly and enter an amount.
4. Navigate to the Common pay types section, click + Another Other Earnings type, then enter a name for the Commission.

Next, let's proceed to the Time off pay policies to set up for PTO. When adding one, you can use Each pay period or any other options except Per hour worked since their pay is associated with either a fixed payment or a percentage of a sale. Follow the steps below:

1. In the Paid time off dropdown menu, select Add new paid time off policy.
2. Under Hours are accrued, determine the best option to use. Example: Each pay period.
3. Complete the required information, then click Save.

Once you've set up everything, you can start creating and running the employee's payroll. Please input a zero (0) in the box under Regular pay so no hours will be computed, then enter the amount for the Paid time off and Commission on their respective fields.

Additionally, explore this article for a deeper understanding of your business or employees' financial standings: Run payroll reports.

To ensure you stay on track with this year's tasks, review the dates in this material to ensure you accomplish them promptly: Year-end checklist for QuickBooks Online Payroll.

Commission-based compensation boosts employee motivation and creates significant revenue opportunities for your business. For more payroll concerns, add them below. I'll be here to address them for you.

The problem is that once you have both "hourly" and "commission" types, you have to put a number under hourly rate and this makes the commission calculation to be off. For example. let's assume that an employee is getting 200$ commission a day. By selecting hourly, I will have to put some kind of number for the hourly pay rate and then add a remainder via commission. That's a lot of manual work as the number of hours changes every day.

another problem is that the PTO is accruing hours but if we marked the hourly pay as 0 then how do I calculate the actual paid time off? For example, If I want to add them an fixed amount once every quarter. How can I achieve that?

Calculating PTO for commission employees with zero hourly pay is essential to you and your business, @americanm1. We'll ensure you can pass your suggestions to our developers by following the process below.

They regularly review user feedback to determine potential new features or enhancements for consideration in future updates. Here's how:

1. Click the Gear icon and choose Feedback.
2. Enter your feedback Suggestion.
3. Press Next.

Furthermore, QuickBooks provides various payroll reports that offer detailed information about employee gross pay, deductions, and tax data. You can refer to this article to learn how to access them: Run payroll reports.

I'm still all ears for more queries about payroll calculation, such as PTO commissions. You can add your reply below and we'll circle back to help you. Take care always.