PTO (i.e., sick/vacation pay) and holiday pay are accruing PTO. How do I change that?

Hello there, @rsleonard.

Let's make sure the payroll item used for PTO is called Vacation or Sick pay so you can change and correct your employees' available sick/vacation time in QuickBooks Desktop (QBDT) Payroll.

You may have used a regular hourly item named vacation or holiday for employees' PTO. That's why QuickBooks accrues additional hours when utilizing employees' PTO hours or paying them for holidays.

To check, go to the Payroll Item List window from the List menu and open the vacation or sick item. Make sure the name of the window is Vacation Salary or Sick Salary. Please see the screenshot below for your reference.

Once verified, you'll have to fix or correct your employee's available sick/vacation hours. To do this, please refer to this article's Available Sick/Vacation Time is incorrect section: Sick and vacation time incorrect or not accruing on paychecks.

Then, the next time you run payroll, you'll have to select the appropriate payroll item, so QuickBooks won't accrue additional hours when utilizing employees' PTO hours or paying them using their available sick or vacation hours.

Also, you may want to check out this article as your reference in case you need to create reports showing your employees' vacation and sick time balance, used, and maximum hours in QBDT Payroll: Create a Sick and Vacation report for employees.

Let me know if you have other payroll concerns or questions about the PTO policy in QBDT Payroll. I'm always ready to help. Take care, and I wish you continued success, @rsleonard.

If only that were the case. See the  screenshot. It shows and item from our company that we've called "PTO-Hourly" as a  "Vacation Hourly Rate." Despite that, when I "pay" an employee with the "PTO Hourly" rate, time is added to their accrued hours at the same rate as their regular hourly pay. How do I change the settings so that compensating an employee this "Vacation Hourly Rate" item that, in our business, we call "PTO - Hourly"  DOES NOT accrue additional hours. See screenshot.

Thank you for responding and providing us with more information, rsleonard.

When creating the employee's paycheck, make sure there's check mark in box Do not accrue sick/vac. Because this option is determined by the Accrual period specified in each employee's profile.

If you reviewed the paycheck and managed to set it to not accrue sick/vacation time, but the hours are still accumulating for some reasons, I'd recommend contacting our Desktop Payroll Team to help you check the set up and investigate further about the unusual behavior.

Here's how:

1. Go to Help menu at the top, then choose QuickBooks Desktop Help.
2. Click on Contact Us.
3. Enter your concern, then hit Continue.
4. Then, choose a way to connect:

• Start messaging with a live support.
• Get a callback from our support (availability may be limited).

I've included this link for more information and other ways to get help from our supports: Contact Payroll Support.

I'm adding this article to learn how you can create reports in QuickBooks Desktop that show your employees' vacation and sick time balances, vacation/sick time used, and maximum hours: Create a Sick and Vacation report for employees.

Please know that I'm always available to assist you if you have any further questions about setting up sick and vacation accruals or QuickBooks. Have a wonderful weekend.