Hello there, WandaJW.
In QuickBooks Desktop (QBDT), we can create a separate payroll item for holiday hours without accruing PTO. By doing so, you can accurately track holiday hours without impacting PTO balances.
Here's how:
- Go to the Lists menu and select Payroll Item List.
- Click the Payroll Item drop-down arrow and choose New.
- Select Custom Setup, and click Next.
- Tap Wage, then Next.
- Choose Annual Salary or Hourly Wages, then Next.
- Pick Regular Pay, and click Next.
- In the Name used in paychecks and payroll reports field, enter Holiday Pay, and select Next.
- The default account for the expense is Payroll Expenses.
- Hit Finish.
Once done, ensure that the Do not accrue sick/vacation pay option is unchecked. You can go to the Paycheck Detail and review it from there. I'll guide you on how to do it.
- Tap on Employees Center from the Employees tab.
- Choose the employee you want to run and select the paycheck.
- Click Paycheck Detail.
- Uncheck the Do not accrue sick/vac option from the Review Paycheck window.
- Hit Save & Close.
Furthermore, when paying a bonus check, consider the taxability of bonuses. To know more about this, check this article: Create Bonus Paycheck.
For tips on tax reports and QuickBooks' payroll tax calculations, visit this link: Understand how your payroll taxes are calculated.
Keep me posted if you need anything else about the holiday time. I'm always one post away if you need help.