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kelsey
Level 2

Post Vacation Wages to Liability Account

We just started tracking our Accrued Vacation as an expense and liability.  Per our Accountant, we manually load the Accrued Vacation balances each month with a debit to Vacation Expense and a credit to Accrued Vacation. Per our Accountant again, we need to post a debit to the Accrued Vacation Liability and credit to Cash each time Vacation Wages are posted through payroll.  Wages are set in QB to only post to expense accounts though.

 

I'm trying to avoid having to do a journal entry to move Vacation Wages from the expense account to the liability account each pay period.  Is there any way to post directly to the liability through payroll?

 

I just spent an hour on the phone with support who recommended changing my liability account to an expense account to resolve the issue and did not understand why that didn't actually solve the issue.

1 Comment 1
ReymondO
QuickBooks Team

Post Vacation Wages to Liability Account

I can help you record the accrual hours your employees earned in your company, @kelsey.

 

We can set up time off policy in QuickBooks Online Payroll. This will record the accrued vacation pay of your employee.


Here's how:

 

  1. Go to Workers menu, then select Employees.
  2. Click the name of the employee.
  3. In the Pay section, click Edit.
  4. Select Edit in the How much do you pay [employee]? section.
  5. Choose Vacation Pay.
  6. Select a policy from the drop-down menu. 
  7. Enter hours per year and Maximum allowed hours (Optional).
  8. Click OK, then Done.

If you want to get a closer look at your business's finances, you can run payroll reports in QuickBooks. This can view useful information about your business and employees.

 

You can click the reply button below if you need further assistance in running your payroll. I'll be happy to help you out.

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