Paid Holidays

Hi there, @NWBookkeeper.

It's nice to see you in the Community. I can share some information and steps in setting up holiday pay and adding it to your employee's paycheck.

In QuickBooks Desktop, you'll need to track the holiday pay separately from sick or vacation pay. Let's set this up first by adding a new payroll item.

Here's how:

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

To track the accruals, you'll need to add this item on your employee's setting. Here's how:

1. Go to Employees menu and select the Employee Center.
2. Double-click the employee's name to edit the payroll information.
3. Select the Payroll Info folder.
4. Add the Holiday Pay Item below the Earnings section.
5. Once done, click OK.

Adding this item will track the YTD amount once you created paychecks with holiday pay.

To create a paycheck, you can add this together with your Regular Salary or you can create a separate paycheck for holiday pay only. Here's how:

1. In the Earnings section of the paycheck, add the Holiday Pay item.
2. For Regular Salary and Holiday Pay, enter the hours worked. For example, on a biweekly payroll, enter 72 hours for the regular salary and 8 hours for holiday pay. QuickBooks Desktop automatically adjusts the pay for each item. Please see attached screenshot below for your reference.

It'll now automatically track the YTD amount on the next paycheck.

You can also check out this related article for your reference: Pay a salaried employee holiday pay in QuickBooks Desktop Payroll.

Let me know if you have other questions about tracking holiday pay for your employees. I'll be here to help.

That doesn't even remotely address my question. I know how to set up and track holiday pay. I asked how to make it so it doesn't accrue sick and vacation time for the hours, since they aren't hours actually worked.

Thanks for the quick response and for clarifying your concern, @PNWBookkeeper.

I'm happy to provide the entire process to accomplish your goal about sick leave and vacation time in QuickBooks Desktop. 

Let's put a check on the Do not accrue sick/vacation boxes in the Employee Center or Company Preferences. That way, the sick/vacation will not accrue in the paychecks. 

Here's how: 

1. Select Employees, then choose Employee Center.
2. Locate and double-click the employee name. 
3. Click the Payroll Info tab and pick Sick/Vacation. 
4. Put a checkmark on the Do not accrue sick/vacation field. 
5. Tap Save. 

Also, while creating paychecks, ensure that the Do not accrue sick/vac box is checked in the Review Paycheck window. 

For your other employees, you can always run these reports below. This way, you can review the time balance, time used, and maximum hours. 

• Employee Contact List
• Time off List
• Payroll Item Detail 

For more information, visit this article: Create a Sick and Vacation report for employees. 

Additionally, please browse these articles below about handling worker's information, deductions, payroll, and other related topics. 

• Workers and employees
• Year-end checklist for QuickBooks Desktop Payroll
• Sick and vacation time incorrect or not accruing on paychecks

Let me know in the comment section if you have other concerns. I'm here to help you further. Keep safe!

No, I want sick and vacation to accrue for hours worked. I don't want it to accrue for holiday pay, as the employee isn't actually working, they are getting paid for the holiday, even though we are closed.

Allow me to step in and share a solution so the sick and vacation pay won't accrue on the holiday pay, PNWBookkeeper.

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 the Do not accrue sick/vac option. See the attached screenshot below for your visual guide.

Don't forget to uncheck it later for the hours worked paycheck. We don't want to mess up your payroll data.

I'm adding these articles for additional guidance:

• How to Create Paychecks using Desktop Payroll
• Pay and file your payroll taxes online.
  
  

Stay in touch with me if you need anything else concerning payroll. I'm always around here in the Community forum to help you.

The two paycheck solution is a good short term solution and I thank you for that; however, QB needs a long term simple solution so we don't have to create separate paychecks.  Please!!!

I have the same problem.  Looks like the previous office manager for this company used an additional payroll item instead of a wage item.  This way they still get paid and taxes are still calculated but sick/vacation are not accrued.  I thought this was a strange way to do things but I'm realizing now that it's really the only work around.  Two paychecks ain't gonna cut it. 

~Sure would be nice if QB could create a way to turn off sick/vacation accrual for certain payroll items.

Thanks for joining this thread, @Blue-River.

The steps shared by my colleague MaryLandT 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:

1. Open your QBDT, then go to the Help menu.
2. Tap on Send Feedback Online, then Product Suggestion.
3. Choose a feedback type and product area on the QuickBooks Feedback window.
4. Enter your suggestion or feedback, name, and email address (optional), then click on the Send Feedback button.

I also encourage you to visit our Firm of the Future site to be updated with our latest news including product enhancements: Firm of the Future.

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

• Sick and vacation time incorrect or not accruing on paychecks
• Set up and track time off in payroll

Also, QuickBooks has several Excel-based payroll reports so you can view your business and employee information. To get started, please open this article: Excel-based payroll reports. 

Please touch-based with me if you need a hand with running payroll or any QuickBooks related. I'll be here to ensure your success. Take care always.