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Join nowI typically enter Holiday pay as a set number of hours on that weeks pay when I enter time through the Weekly Timesheet. Holiday Pay has it's own Earnings Item. So the week of 12/29-1/4 would show regular hours on all days except 1/1. 1/1 was a holiday and no one worked. I'd choose Holiday Pay for my Earnings Item, then enter some hours on 1/1. The pay check certainly appeared tor process everything properly.
But it also appeared to be giving sick leave accrual for those Holiday hours. How do I turn off sick leave accrual only for those holiday hours?
There is a way to stop accruing on sick and vacation, but not holiday pay.
Does it automatically NOT accrue sick leave on sick pay? Or is there an action I need to take there. Example: employee works 24 hours plus 8 hours of sick leave. Does QB accrue sick leave on all 32 hours?
QB defaults to accruing sick and vacation pay on sick and vacation because that is the normal thing most companies do, since they usually tell their employees something like "if you work full time you'll get 2 weeks of vacation per year". But, if you don't accrue vacation time while the employee is on vacation, then if they ever take vacation they won't accrue the quoted amount. Which makes the employees unhappy when they figure it out.
But you can change this in payroll preferences. Start at Edit | Preferences | Payroll & Employees | Company Preferences | Sick and Vacation
Good morning, @MattApap.
I'm here to clarify the steps on correcting the holiday pay for you.
As stated above by @BigRedConsulting, the steps provided are correct.
Here's an article that breaks down more information for you with time not accruing correctly: Sick and vacation time incorrect or not accruing on paychecks.
If you have any other questions, don't hesitate to reach out. We're always here to help.
We don't want to accrue PTO on Holiday pay, but there's no way to turn off this feature. Why? Do you have a workaround?
I appreciate you joining here in the thread, nooodler.
I'm pleased to share insights on how you can avoid accruing Paid Time Off (PTO) for Holiday pay.
In QuickBooks Desktop, if you mark PTO as unaccrued, your payroll data will be affected, which will cause an issue when filling out tax forms.
Therefore, I recommend creating separate unaccrued holiday pay and a regular paycheck to keep your data accurate.
On the other hand, consider generating and customizing payroll reports for a closer look at your business finances. You can also create a memorized report to save your customization for future use.
Don't hesitate to inform us in the Community if you have additional questions when managing Paid Time Off or other related concerns in QuickBooks Desktop. We're always here to lend a hand.
I'm a bit confused by your reply. Are you suggesting paying employees twice (1 check with regular hours, 1 check with only holiday hours) any time we have a paid holiday? That seems burdensome.
Running reports doesn't fix the problem of PTO balances reflected on the employee paystubs, which is how they are to keep track of the PTO they've earned (by the hour).
Thank you in advance for clarifying.
Thanks for the prompt reply, @nooodler. Let me chime in and share information about the suggestion shared by my colleague to create two different paychecks.
As mentioned, you need to create two paychecks for the employee. One for the holiday pay and one for the hours worked. When you create a holiday paycheck, you need to put a check in the Do not accrue sick/vac option if you don't want time accrued when paying sick/vacation/overtime. Then, don't forget to uncheck it later for the hours worked so it won't mess up your payroll data.
Also, the steps to create two paychecks for the employee are just a workaround. I can see how it would be useful to have the ability to turn off sick/vacation accrual for certain payroll items.
That said, I'd suggest sending feedback straight to our product developers/engineers to be considered in the future. They are constantly finding ways to improve our product and service to make QuickBooks work the way your business needs.
To send product feedback in QBDT:
I've added this resource to further guide you in tracking time off, vacation, and sick pay for your employees in QuickBooks Desktop (QBDT) Payroll
Also, QuickBooks has several payroll reports where you can personalize them to view your business and employee information. To get started, please open this article: Run payroll reports.
Please contact me if you need a hand with running payroll or any QuickBooks related. I'll be here to ensure your success. Take care always.
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