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MattApap
Level 1

Holiday pay appears to be accruing sick leave but I'd rather it didn't

I typically enter Holiday pay as a set number of hours on that weeks pay when I enter time through the Weekly Timesheet.  Holiday Pay has it's own Earnings Item.  So the week of 12/29-1/4 would show regular hours on all days except 1/1.  1/1 was a holiday and no one worked.  I'd choose Holiday Pay for my Earnings Item, then enter some hours on 1/1.  The pay check certainly appeared tor process everything properly.

 

But it also appeared to be giving sick leave accrual for those Holiday hours.  How do I turn off sick leave accrual only for those holiday hours?

 

4 Comments
BigRedConsulting
Community Champion

Holiday pay appears to be accruing sick leave but I'd rather it didn't

There is a way to stop accruing on sick and vacation, but not holiday pay.

MattApap
Level 1

Holiday pay appears to be accruing sick leave but I'd rather it didn't

Does it automatically NOT accrue sick leave on sick pay?  Or is there an action I need to take there.  Example:  employee works 24 hours plus 8 hours of sick leave.  Does QB accrue sick leave on all 32 hours?

BigRedConsulting
Community Champion

Holiday pay appears to be accruing sick leave but I'd rather it didn't

QB defaults to accruing sick and vacation pay on sick and vacation because that is the normal thing most companies do, since they usually tell their employees something like "if you work full time you'll get 2 weeks of vacation per year".  But, if you don't accrue vacation time while the employee is on vacation, then if they ever take vacation they won't accrue the quoted amount.  Which makes the employees unhappy when they figure it out.

 

But you can change this in payroll preferences.  Start at Edit | Preferences | Payroll & Employees | Company Preferences | Sick and Vacation

Joshua R
QuickBooks Team

Holiday pay appears to be accruing sick leave but I'd rather it didn't

Good morning, @MattApap.

 

I'm here to clarify the steps on correcting the holiday pay for you.

 

As stated above by @BigRedConsulting, the steps provided are correct.

 

Here's an article that breaks down more information for you with time not accruing correctly: Sick and vacation time incorrect or not accruing on paychecks.

 

If you have any other questions, don't hesitate to reach out. We're always here to help.

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