Problem: Vacation time in QuickBooks is accruing when employee uses vacation time and holiday time

RE: It looks like QuickBooks is accruing vacation time when an employee uses vacation time and holiday time, and that should not happen.

It's actually very normal. Every company I've ever worked for did this: I accrued the same amount of vacation and sick time on each paycheck no matter if I worked or was on vacation.  The companies I worked for told me how much sick and vacation time I'd get in a year, like "three weeks", and the only way to make that happen is to accrue it on each check.

However, if you don't want to accrue time when your employee takes sick and vacation, there's an option for that in preferences:  Go to at Edit | Preferences | Payroll & Employees | Sick & Vacation  and then see the box at the bottom of the window titled Sick and Vacation Accrual.

There is no provision for holiday time as there is no such animal in QuickBooks.

Thanks for sharing your expertise, BigRedConsulting. I definitely agree with him, Dav.

Most companies practice this type of time off policy. If you don't want QuickBooks Desktop to accrue hours when the employee is using sick and vacation time, we can adjust your payroll preferences. However, the program will still produce accruals for holiday time. Here's how to do it:

1. Go to the Edit menu.
2. Choose Preferences, then select Payroll & Employees.
3. Head to the Company Preferences tab.
4. Click Sick and Vacation and tick the Do not accrue sick and vacation hours paid checkbox.
5. Hit OK to save changes.

To help track vacation and sick pay for your workers, I recommend reading this article: Set up and manage time off in QBDT.

If you have additional payroll questions or need help in completing your other year-end tasks, drop a comment below. I'll jump right back in to answer them for you.

@KlentB  RE: We can adjust your existing time off policy, so QuickBooks Desktop won't accrue time when the employee is using vacation time and holiday time.

How does your answer address address holiday time?

Hello BigRedConsulting,

Thanks for joining this thread and pointing out the information shared by colleague above. I already notified him to update his answer.

We always appreciate your input. Cheers.

So why wasn't this ever answered? I have the same issue!

We appreciate you for getting into this thread, dex.

Before anything else, may I ask if you've followed the suggested solution above? If so, would you mind sharing if you've encountered an error message or problems along the way? It would be very beneficial if you could provide me with additional information or screenshots to help address your concern more effectively.

I'll keep an eye on this thread for your reply. Take care.

@dex123  It was answered.