How to pay employee with their sick leave hours?
Hello there, @PacMan68.
In QuickBooks, the Sick and Vacation hours used are based on the pay period end date of the paycheck, not the paycheck date. Also, the hours available as of date will update to the most recent paycheck pay period end date for the employee.
To create a paycheck with sick and vacation time, you'll need to set up sick and vacation time first. I'll show you how:
Click the Lists menu, then select the Payroll Item List.
From the Payroll Item drop-down on the bottom left, choose New.
Click Custom Setup, then Next.
Choose Wage, then Next.
Select Annual Salary or Hourly Wages (depending on whether you have salaried or hourly employees).
Click Next. Select Sick or Vacation Pay, then Next.
Enter a name for the item, then Next. If you're using the time off you can rename this item to TO.
Choose the expense account you want for the item, then click Finish.
Once done, you can add the sick or vacation time on a paycheck. Here's how:
Open the Preview Paycheck window.
In the Earnings section, go to the Item Name column, then choose the sick or vacation item you created in the drop-down.
Enter an hourly rate in the Rate column and the number of hours in the Hours column for your hourly employees. If the time will be "unpaid," then set the rate to 0.
For salaried employees, enter the number of hours worked next to the regular salary earnings item in the Hours column and the number of hours paid for sick/vacation time next to the sick/vacation salary earning item in the Hours column.
QuickBooks will divide the salary rate accordingly once the correct number of hours is entered. Click Continue to create paychecks.