Holiday pay subtracting from vacation pay

Thank you for bringing this to our attention, @michelle wells.

This happens when the holiday payroll item was set up as vacation pay on the wages. In QuickBooks Desktop, you'll need to track the holiday pay separately from sick or vacation pay.

For now, we have to create a new payroll item and use this when running payroll. 

Here's how:

1. Go to the Lists menu so you can click on the Payroll Item List tab.
2. Tap the Payroll Item drop-down, then choose New.
3. Press Custom Setup, then tap Next.
4. Select Wage, then tap Next.
5. Choose Annual Salary or Hourly wages, then tap Next.
6. Select Regular Pay, then tap Next.
7. In the Name used in paychecks and payroll reports field, enter Holiday Pay, and select Next.
8. The default account for the expense is Payroll Expenses.
9. Select Finish.

Let me know if you have any other questions by adding a comment below. I'll get back to you as quickly as possible. Have a great day ahead!

Hi

This works for not subtracting from vacation pay.

However, now I am seeing that vacation hours are being accrued on the Holiday pay hours. That were not worked. Hourly Staff get paid for them at their hourly rate even when not worked.

How can I set it up to do both?

Hi there, @windrain.

I'm here to help you avoid deducting the working hours from the actual accrued vacation hours.

You can add a payroll item and add it to the employee's earnings. You can choose the Hourly rate type and use it when running payroll so that it will not be deducted from the accrued vacation hours.

You may follow the steps mentioned by my colleague above. To know more about the details, you can check out this article: Sick and vacation time incorrect or not accruing on paychecks.

I'll be here if you need further assistance. Let me know in the comment section. Take care.

Hi,

I don’t think I am explaining this question in the right way, so, I would like to try again please.

I used Holiday as a bad example.

What I need to find out is this: 

If I have to put a hourly staff on “Paid administrative leave”, how do I do this so that the hours are NOT subtracted from their accrued vacation time AND so they Do NOT accrue vacation hours on the “Paid administrative leave”? (because they DID NOT work them)

Hi there, windrain. 

Thank you for stopping by the Community and clarifying, what you're going to want to do is follow the article provided by my colleague above about setting up an employees holiday pay.

Follow these steps to create a new payroll item in which the employee is not accruing time. From there you can apply it to your employee for the duration of their paid administration leave. When they come back, you can go back to the original item and they'll be good to go. 

If you're still having trouble, don't worry, you can reach out to our support team and they will be able to guide you through the process step-by-step. To reach them, you can check out this link. 

Thanks for your time and I hope you have an excellent day. 

This whole thread has to be one of the most useless non-answers to a question ever.  It is actually pretty typical of the mess that is QuickBooks.  Why not just fix the software so that paying holiday pay does not screw up vacation time.  Quickbooks just continuously get worst.  It seems impossible that they can manage that, but they just keep on jacking things up.

I have another work-around.

My client moved to PTO (Paid Time Off) last year. It is setup as Vacation Time.

This leaves the Sick Time pay type unused. 

Once I realized the problems with Holiday Pay, I changed it to be a Sick Pay type, and did the same for Bereavement and Jury Duty. The same could be used for the Admin Leave. 

It does accrue to the Sick Time used, but that can be ignored or reset to zero since we are not accruing or paying Sick Time.

If Vacation Time AND Sick Time are being accrued and used, well, you are SOL.