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greenstreetkw
Level 2

Paid Time Off Per Hour Worked

I had noticed while doing payroll the other day that an employee who had been using their Sick Pay more often than some others, still had nearly 30 in reserve, which shouldn't have been the case, since they should have maxed out accruing sick/vacation hours by that time. What I realized was that while most employees had maxed out their hours, the ones who had been using them, continued to accrue back up toward the maximum set. This is obviously unfair to other employees and seems to be a glitch with QB's settings. The only other option is to give employees 40 hrs at the beginning of the year/ or beginning the date they start work, which is not preferred, because the new employees have not yet earned the time off. The Sick Pay option in QB gives the illusion that the accrued hours will max out at the allotted set, but it is deceiving and surely has not been noticed by many business owners utilizing QB Online. It would be very appreciated to our store, and certainly all other businesses utilizing QB, if the accrual method (per hour...as required by law) and 'max out' setting could be revised to max out 'per year' and not simply until an employee utilizes them. Essentially, that is allowing for 'Unlimited' sick/vacation pay to be accrued. If that was the setting we were looking for, we would have selected that in the options. I was wondering if anyone else had encountered this issue and possibly found a remedy?

8 Comments
IamjuViel
QuickBooks Team

Paid Time Off Per Hour Worked

I thank you for sharing complete details about your concern, @greenstreetkw.

 

 

When setting up a Sick Pay policy, you have 5 options on how you'd like the sick pay hours to accrued.

  • At the beginning of the year 
  • Each pay period 
  • Per hour worked 
  • On anniversary date 
  • Unlimited 

You'd want to review your account's sick pay policy assign to each of your employees. This way, we can make sure that it is showing and accruing accurate information. Here's how:

  1. Go to the Workers menu.
  2. Choose the Employee tab. 
  3. Double-click on the employee's name to open his or her profile.
  4. Click the pencil icon next to Pay. 
  5. Scroll down to the How much do you pay (employee's name) section, click the pencil icon for Additional pay types: Sick Pay. 
  6. Checked Sick pay and choose the sick pay you've created. 
  7. Click Done. 

You can repeat the same process for each employee. Just a heads-up, setting up a maximum allowed accrued hours on your employees' sick policy automatically stops QuickBooks in accruing hours when they reach the limit. Though, it's not set up as a per year feature. It will just stop when it reached 24 hours.

 

 

Feel free to visit us here if you have other questions about managing your employee's payroll information. I'm always here to help.

greenstreetkw
Level 2

Paid Time Off Per Hour Worked

Hello IamjuViel,

greenstreetkw
Level 2

Paid Time Off Per Hour Worked

Hello IamjuViel,

JonpriL
Moderator

Paid Time Off Per Hour Worked

I wish I could make it better, @greenstreetkw.

 

Since the issue persists even after following the suggestions above, I'd recommend contacting our Payroll Care Team. From there, a specialist can pull up your account, securely, and further investigate the root cause of this unexpected behavior with their tools.

 

To do so, you can follow the steps below to reach out to our dedicated support:

  1. Go to Help.
  2. Select Contact Us.
  3. Enter Employee paid time off - Incorrect accruals in the What can we help you with? field.
  4. Click Let's talk.
  5. Choose a channel where you wish to connect with our team.

Additionally, you can also browse for the content of this helpful article to get a better view of how our business's doing while working with your payroll: Reports available in QuickBooks Online Payroll.

 

If you have any other questions, please let me know in the comments below. Stay safe!

greenstreetkw
Level 2

Paid Time Off Per Hour Worked

Thank you, JonpriL. I will do that.

strdwmn
Level 2

Paid Time Off Per Hour Worked

Hi @greenstreetkw@JonpriL .

Have you been able to resolve this problem?  I have the same issue and reported to QB over a year ago.  Sadly it must not be an issue for enough people to fix the problem.  My work-a-round is to monitor the accruals and change the policy in QB for the affected employees when the annual maximum is reached. I have a speadsheet for each employee that has to be updated after every payroll - luckily there is not more than 20 active employees.

I had called the new policy "Exceeds Annual Maximum" and set the accrual rate at 0/per hour.  Unfortunately, with the QB payroll updated in November 2020 we can no longer provide a custom name for our policies.  Now the default policy description is "0 hours/hours worked" which is not very explanatory and only raises questions when viewing the report.

I again provided feedback to QB on both these issues today.  I use QBO Payroll Core, and don't know if other versions of payroll offer more comprehensive time off accrual features...perhaps the QBO team can respond to that question.

Good luck and know that you are not alone!

greenstreetkw
Level 2

Paid Time Off Per Hour Worked

Hello @strdwmn,

 

No, we have not found a resolution, nor has Quickbooks even responded to our multiple inquiries. My solution is, also, to monitor the accrued/used hours and once the employee has reached 40, switch the Sick Pay Policy from "(.034hrs/hour worked with Max of 40 hours)" to "40 hours/year(accrued at start of year) max of 40 hours" and deduct any overages. Then, the following year, revert to the first Accrual Policy.

I monitor the accrual and usage by viewing Vacation Sick Leave found in Reports and adding the SICK USED YTD to CURRENT SICK AVAILABLE) to determine proximity to 40 total hours.

It's not optimal to have to work around a system that is supposed to be full service and have these kinds of important issues sorted out. But, even more disappointing is the lack of response or interest in what I feel is a pretty serious glitch, affecting both employer and employee, and that I imagine would only require updating or adding additional code to some algorithm to fix.

We will be very happy when the issue has been addressed and resolved, but I suppose the complaint quota has not yet been reached.

greenstreetkw
Level 2

Paid Time Off Per Hour Worked

Hello @strdwmn,

 

No, we have not found a resolution, nor has Quickbooks even responded to our multiple inquiries. My solution is, also, to monitor the accrued/used hours and once the employee has reached 40, switch the Sick Pay Policy from "(.034hrs/hour worked with Max of 40 hours)" to "40 hours/year(accrued at start of year) max of 40 hours" and deduct any overages. Then, the following year, revert to the first Accrual Policy.

I monitor the accrual and usage by viewing Vacation Sick Leave found in Reports and adding the SICK USED YTD to CURRENT SICK AVAILABLE) to determine proximity to 40 total hours.

It's not optimal to have to work around a system that is supposed to be full service and have these kinds of important issues sorted out. But, even more disappointing is the lack of response or interest in what I feel is a pretty serious glitch, affecting both employer and employee, and that I imagine would only require updating or adding additional code to some algorithm to fix.

We will be very happy when the issue has been addressed and resolved, but I suppose the complaint quota has not yet been reached.

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