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brookeanne
Level 3

commission based employee vacation

What is the easiest way for me to pay a commission based employee vacation time? We do not accrue vacation, I load a lump sum at the beginning of the year. So I do not need to accrue only track the number of hours used/available.

 

 

11 Comments 11
ZackE
Moderator

commission based employee vacation

You've come to the right place, brookeanne. The Community's here to help.
 

You can give an employee vacation pay by setting up a time off policy.
 

Here's how:

  1. In your top menu bar, go to Lists, then Payroll Item List.
  2. Use the Payroll Item ▼ drop-down and choose New.
  3. Click Custom Setup.
  4. Hit Wage.
  5. Pick Annual Salary or Hourly Wages.
  6. Elect Vacation Pay.
  7. Enter a name for your item. If you use time off, rename it to "TO".
  8. Choose an expense account.
  9. Select Finish.


Now you'll be able to add paid time off and make changes to your existing policy. When making updates to policies, be sure to tick the Do not accrue checkboxes if you don't want time accrued when paying vacation.
 

Please feel welcome in sending a reply if there's any additional questions. Have a great day!

brookeanne
Level 3

commission based employee vacation

yes, but their commission based regular pay item that I have assigned to them does not allow for me to enter hours. So the vacation does not show on their stub.

Candice C
QuickBooks Team

commission based employee vacation

Good Afternoon, @brookeanne

 

Thanks for reaching back out to the Community. Let's get you the support you need to fix the problem with your employee's vacation time. 

 

Since you're not able to view the options to enter the hours, then I recommend contacting our Customer Support Team. They have the tools to walk you through some additional steps to help resolve this issue as soon as possible. 

 

Here's how: 

 

  1. Go to the Help menu. 
  2. Choose the QuickBooks Desktop Help option. 
  3. Click the Contact Us hyperlink. 
  4. Type in your question and press Let's talk
  5. Scroll down and select to Get a callback

 

That's all there is to it. 

 

The problem should be fixed in no time after getting in touch with our support. Let me know how it goes. I want to make sure that you're able to get back on track. Wishing you and your business continued success!

fws
Level 1

commission based employee vacation

Can you just tell us how to set it up without calling? Its a hassle waiting for a callback when we have other things we are trying to do. Just list the steps here.

ChristineJoieR
QuickBooks Team

commission based employee vacation

Let's dig into the process of tracking the employee commission-based salary, @fws. Since QuickBooks isn't automatically tracking commission-type salary, we will need to record this manually under the Employee information. I'll show you how to do it in QuickBooks Desktop Payroll.

 

What we can do, is enter its rate and quantity in the paystub. Then, record the available and used vacation/sick leave. In this case, we need to update the vacation/sick leave to the payroll information manually on every scheduled payroll. This way, the leave credits will show on the paystub each time you run payroll.

 

See the illustration below for the detailed procedure:

 

  1. First, go to the Employee Center, then choose a commission-type employee. Next, tap the Edit icon. 
  2. Once done, Select Payroll Info.
  3. Add a new pay type or choose Commission pay.
  4. Then, Hit the Sick/Vacation button.

 

 

Once the screen shows, we need to update the leave credits whenever you run payroll for this employee to help it appear on the employee's paycheck.

 

 

Furthermore, you'll want to change the pay type from Hourly to Sales Commission or add a new pay type to identify the employee transaction for the Commission pay. 

 

Here's how:

 

  1. Choose Lists, then Payroll Item List.
  2. Press the Payroll Item ▼ dropdown, then New.
  3. Hit Custom Setup, then Next.
  4. Tap Wage, then Next.
  5. Select the Commission wage type. 
  6. Then, Next.
  7. Enter a name for the pay item, then Next.
  8. Select the Expense account where you want to track wages.
  9. Select Done.

 

You may also want to view the complete process of adding or changing pay types; review this page: Add or change pay types.

 

If everything is set up, you can run a scheduled payroll, and enter manually the Rate and Quantity. You'll also notice the vacation or sick leave on the left side is up-to-date.

 

Here's how:

 

 

Let me know if you have additional concerns about the steps above. I'll be here to support you along the process.

 

locktek
Level 1

commission based employee vacation

Can you send instructions on how to do this for QB Online please

SheandL
QuickBooks Team

commission based employee vacation

A warm welcome to the Community, @locktek.

 

Let me share some ways to pay a commission-based employee vacation time in QuickBooks Online. Before anything else, please know that if you set your employee's pay type into Commission, the Time off pay policies feature in their Pay types will be disabled. To pay them, we can select either Hourly or Salary to enable the said feature. To do so, here's how:

 

  1. Go to Payroll, then select Employee.
  2. Choose the employee you want to pay. 
  3. On the employee's profile, find the Pay types and click Edit.
  4. Set the employee's pay type, either Hourly or Salary, and add the necessary details. 
  5. On the Common pay types, tick the checkbox for Commission. 
  6. Go to Time off pay policies, click on the Vacation pay dropdown, and click Add new vacation pay policy.
  7. From there on, enter the necessary information. 
  8. In the Hours per year and Maximum allowed, put zero (0) on it so you don't need to accrue, then hit Save.
  9. After doing the process, click Save.

 

Also, if you want to enter your employee's year-to-date paycheck infor and totals, you can visit this article: Add pay history to QuickBooks Online Payroll.

 

Let us know if you have other questions about paying a commission-based employee. We're always ready to assist you.

KWinship
Level 1

commission based employee vacation

This solution does not work for a solely commission based employee using Quickbooks Online because it requires you to enter either an Hourly Rate or Salary. $0 is being rejected when I try to follow these steps. You should be able to have a commission only employee that you reward with vacation time. Could you please correct this issue or present us with a solution that actually works?

SirielJeaB
QuickBooks Team

commission based employee vacation

Thank you for following the outlined steps above, KWinship. I have details regarding commission-based employee vacation handling in QuickBooks Online (QBO).

 

The option to grant vacation time to commission-only employees is unavailable in QBO. I recognize the practicality of this capability for managing commission-based staff in the system. I suggest conveying your suggestion directly to our Product Developers. They are keen on receiving your input and actively encourage you to share your comments.

 

To send your feedback, here's how:

 

  1. Open your QBO account.
  2. Go to the Gear icon and select Feedback.
  3. Type in your suggestions and then click on Next.

 

As a workaround, you can enter an hourly rate and then edit the amount when creating paychecks or update your employee's accruals manually.

 

Additionally, you'll want to get a closer look at the financial status of your business or employees. Read this article: Run payroll reports.

 

I've got your back if you have further inquiries about handling commissions or need assistance with other payroll-related concerns. Kindly hit the Reply button below, and I'll be ready to assist you promptly.

 

KWinship
Level 1

commission based employee vacation

Do robots answer these questions? If you'd ACTUALLY READ the entire thread, you would be able to answer my question. Instead you posted something completely random and unhelpful.

ChristineJoieR
QuickBooks Team

commission based employee vacation

Greetings, KWinship. I know you require additional functionality preferences in QuickBooks Online Payroll.

 

I am pleased to inform you that my colleague has already updated her previous answer above. I understand that QuickBooks requires hourly and salary rates for the Commission Only based employee. With that, we can submit feedback to our product developers so they can review this option and consider adding it to the next product update.

 

We appreciate your patience and understanding as we strive to make QuickBooks Online Payroll as comprehensive and user-friendly as possible, and we would like to send our heartfelt gratitude for being with us.

 

If you are willing to submit your suggestion, check out the steps below:

 

  1. Go to the Gear icon.
  2. Under the Profile column, select Feedback.
  3. Share your suggestion, then click Next.

 

You'll want to track your suggestions through this website. You can also visit our blog to keep up with our recent events and developments.

 

If you have other questions about managing employees and reports, add them below. Please don't hesitate to reach out for any recommendations or concerns. Your satisfaction is our top priority.

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