Our employees are accruing more than the maximum established under our company preferences. The system keeps on accruing as if there is no maximum. I have already spoken to a QB agent on the phone and she indicated that our settings are correct. I have attached our settings. This is a big problem and your help is much appreciated.
Here is the definition provided by QB: "Maximum hours for the year: The total hours someone can save in one year. Once they accrue this maximum, they won't accrue anymore until the next year. Ex. Let's say you set your maximum number of hours to 40. Joe accrues 40 hours by August and uses 10 hours in October. He won't accrue more sick time until the new year starts."
That is just not happening for us. Ours is blowing past the maximum and our employee paystubs show the wrong balances and they are taking more than they are eligible for.
Hi there, @Mellane.
I have just the steps that'll help stop QuickBooks from accruing sick time.
You can either edit the Sick/Vacation setup in the employee's profile or put a check in the Do not accrue sick/vac box when creating the paycheck.
Here's how to edit the Sick/Vacation setup:
Let me show you how to mark the Do not accrue sick/vac checkbox:
For more information, I've added some articles about adding the appropriate accruals to your payroll system and 2019 updates for sick and vacation pay:
Please let me know if there's anything else I can do for you. I always have your back and am always happy to help. Thanks for reaching out, wishing you all the best.
Thank you for your reply. However, I know how to manually stop QB from accruing sick time. That is not the issue. The issue is that the software is supposed to do that automatically as each employee reaches the maximum established in the parameters we set. AND IT IS NOT DOING THAT. The whole reason we upgraded to this version of QB was for this functionality.
Can anyone provide guidance as to why QB continues to accrue after the employee has reached the specified maximum, for example 40 hrs? What do I need to do differently?
Here is an example of an employee's settings which show the maximum number of hours to accrue and the maximum number to carryover, and also the hours available which far exceed these parameters.
I appreciate the complete details about your concern, @Mellane.
Let's ensure that your QuickBooks software is updated to the latest version. Once completed, let's update your payroll tax table. From here, you can ensure that your employee's sick accrual will automatically calculate.
To update your payroll tax table, here's how:
You can check this article for more detailed steps: Get the latest payroll tax table update.
Once completed, you can now update your QuickBooks to the latest released version.
For step-by-step instructions, you can read through this article: Update QuickBooks Desktop to the latest release.
If the issue persists, let's perform verify and rebuild to isolate any possible data damage or corrupted data. For more detailed steps, you can refer to this article: Resolve data damage on your company file.
Feel free to visit us here in the Community if you have other questions. I'm always here to help.
I did the full update just a couple of weeks ago and, as you are probably aware, the update has created an error for which there is still no resolution; and which is addressed in this discussion https://quickbooks.intuit.com/learn-support/en-us/paid-time-off/sick-and-vacation-time-incorrect-or-....
That said, I can try it again, and will report back. In the meantime I found another issue with the sick time accruals. The system is not accruing sick time on my Overtime wages payroll item. So anytime there is overtime during a payperiod, the hours using that payroll item are excluded from the accrual calculation. Any idea why this would happen? I included the payroll item set up for your reference.
Hello there, @Mellane.
Yes, there are reported cases about sick time continuing to accrue after the max limit. The article provided should resolve the issues with the accrual calculation.
Additionally, upgrading to QuickBooks 2019 will provide a workaround to this behavior. With this, you'll also be able to set a maximum for carryover sick pay.
However, at this time, we can only use the regular rate to calculate sick pay. You may use two calculation methods, either per hour worked or per paycheck. To learn more about this, please refer to this article: Set up and pay sick and vacation time.
If you have any questions or need clarifications, let me know in the comment section. I’m here to help. Have a nice day!
Thank you for the additional help. We did upgrade to QB 2019 this year specifically for this functionality, which is still not working correctly for us. I have a couple of questions/clarifications:
1) Did I understand you correctly that even in QB 2019 it will not accrue sick time on my Overtime wages payroll item? That it will only calculate on the base wages? That is a significant oversight. My employees need to be able to accrue sick time on all of their hours worked, regardless of wage rate. Will this be fixed? I can't work around this by setting up all of my overtime payroll items as "base wage" payroll items (not overtime), because that causes other problems. For example it won't accurately track my Overtime Premiums that are very important for Workers Compensation. So that is not a good option... What do you suggest? This is a big shortcoming!
2) In terms of the accruals not stopping when they reach the Max. I have a theory. Let me know if this is the possible culprit: First, you need to know that we changed from Enterprise Contractor Edition 15.0 to our current Premier Contractor Edition 2019 (specifically to get this functionality). With that said, we pulled all of our existing data into the new file, which includes the Payroll Items, etc, etc . My theory is that perhaps payroll items that we brought in from the the old Enterprise file don't quite work properly when imported into the 2019 Premier Contractor Edition? What do you think? If so, that would mean I need to recreate "from scratch" so to speak all of my compensation payroll items and assign them to my employees. It is a big project, but I can do that at the end of this year and start 2020 with all new payroll items that were created within this new version of the software. Thoughts?
Thank you all for your assistance!!!
I wanted to also follow up on the OT shortcoming:
"However, at this time, we can only use the regular rate to calculate sick pay. You may use two calculation methods, either per hour worked or per paycheck. To learn more about this, please refer to this article: Set up and pay sick and vacation time."
That setup information is very straightforward,but there are actually 3 set ups not 2: Beginning of the Year, Every Paycheck and Every Hour On Paycheck.
We calculate it based on "Every Hour On Paycheck"... our employees are hourly. They get paid straight (base) wages and overtime wages. Both are hourly wages and the hours are on their paychecks. So both of those should be accruing sick time =>Every Hour On Paycheck. By law (Federal and OR) all hours worked are subject to PTO, so they should be accruing on every hour worked, regardless of wage rate. So what am I missing? How is it that QB is not accruing on EVERY HOUR on the paycheck?
What are other businesses doing to manage this shortcoming which results in under-accrual of PTO?
It's nice to hear back from you, @Mellane,
I’d like to add a few clarifications about the issue you’re getting. First, Sick/Vacation should accrue for both Hourly and Overtime payroll items. See this:
Here's another check after reaching the maximum limit:
If it doesn’t work, it’s possible that you’re using an incorrect item on the employee’s check. Here’s how to add an Hourly Overtime pay type:
Review each payroll item used and keep track of the accruals shown on the paycheck. This way we can drill down when the problem started. Issues like this are sometime attributed by corruptions on the company file.
Secondly, QuickBooks Enterprise is not considered backward compatible with QuickBooks Premier which means they are using a different database structure. While there isn’t a direct way to restore a Premier company file to QBE, importing from a different source can be subject to limitations.
If every set up is correct but still getting the same problem, reaching out to our Technical Team is the best option for us. They can run some diagnostics on the company file to identify underlying issues with the Sick/Vacation accruals.
Here's how to get support:
Let me know how it goes by adding another comment below. I want to make sure your payroll processing is accurate, and I'm here if you need additional help. Have a good one! Take care!
Thank you for the information. We have previously gone through all of the above. We believe we found the issue - the YTD calculations are not working on our sick and vacation items. Very strange. It just doesn't sum cumulatively over the year. So at the end of the year, the accrued vacation time still says 6.67 (this is for an exempt employee who accrues 6.67 per pay period). The fact that the YTD is not calculating would explain why it isn't stopping to accrue at the YTD max. Why it isn't working correctly is a bit of a mystery, but my theory is that the payroll items we brought over from our old Enterprise version are not fully compatible (downward) with the Premier Contractor 2019 we are now using (ironically, explicitly for this functionality)! So we will recreate all new payroll items within this version at the end of 2019, and make the old ones inactive. I really have no other idea what to do....
We have the same problem, but think it is because the maximum is looking at the Available sick hours and using that to determine if it should accrue. If the Available balance = the maximum limit, the system will not accrue more, but if they have used some, then it will accrue again until the Available balance = the maximum hours we have set. We upgraded to 2019 to correct this, and I swear when we first upgraded it worked. Now it doesn't anymore, so I am convinced some update messed it up.
Hey there, @Jen32. Thanks for joining the thread. I'm happy to help you out with the Sick Time Maximum.
It sounds like you've turned on the Maximum hours at a time option, which accrues Sick Pay should the employee use some and are now under the maximum. Go through these quick and easy steps to fix this so that it sets a hard limit:
1. Go to the Edit menu, then Preferences.
2. Select Payroll and Employees, then go to the Company Preferences.
3. ChooseSick and Vacation.
4. Under Set accrual limit, click Maximum hours for the year.
5. Under Maximum hours to carryover, enter the maximum number of unused sick hours that you are allowing your employees to carry forward into the new year.
Ex. If an employee has 12 hours of sick time remaining at year-end and you set Maximum hours to carryover at 10 hours, only 10 hours will continue to be available for the employee’s use. The other 2 hours will be lost.
If you have any other QuickBooks questions, feel free to reach out to me. Have a good one!
Hi there, Jen.
You are right with your theory about "if the available balance is equal to the maximum limit, the system will not accrue more". This works if you have set up the Max hours for a year limit.
The second theory "if they have used some, then it will accrue again until the available balance is equal to the maximum hours we have set" will work if you have set up the Max hours at a time limit.
In QuickBooks 2019, we have two types of max limit options for you to select.
Ex. You set your maximum number of hours to 40. Maria accrues 40 hours by August and uses 10 hours in October. She'll accrue more sick time on her next paycheck even though the new year hasn’t started.
Ex. Let's say you set your maximum number of hours to 40. Joe accrues 40 hours by August and uses 10 hours in October. He won't accrue more sick time until the new year starts.
We might need to revisit the sick and vacation policy setup to see if we've selected the correct limit for each employee. Here are some articles for more details:
Let us know if you have any questions about payroll. We are here to help.
No, I have done it correctly. Max hours for years is what is set. It shouldn't matter if they use any. The system knows how much they have accrued, you can get it in a time off report. It should be set to use that and not the available balance which can change weekly.
Updating the QuickBooks Desktop release version is a good start when it comes to fixing payroll-related issues. After that, let's try to overhaul your payroll tax table.
Here are some recommended articles that you may find helpful:
You should now be up-to-date and accurate. Let me know if I can be of additional assistance. I'm always here to assist.
Why is Intuit not fixing this issue in versions before 2019? I have ALL of my client payrolls on 2017 and this problem has struck several of them and cost them $$. They would like to get their overpaid sick time money back from someone --- and are looking at ME! Is Intuit offering any kind of reduction of payroll subscription fees to help offset the financial impact of the improper working of the accrual max/use max problem? It would be greatly appreciated and . . . . quite frankly - expected. Was there ever a notification sent out that the sick time max wasn't working properly? I didn't see anything, but I don't read everything that crosses my email. Thank you -
Hi there, LJH2019.
If you've already tried the steps provided above but still having the same issue, I'd recommend contacting our Customer Care Team. We can investigate what's the cause of this issue and check it with our engineers.
Here's how you can reach out to us:
You can also check out our support hours and contact us at a time convenient to you.
Should you have other questions or concerns, feel free to reach out to us here. Thanks.
If I choose the Maximum hours for a year, and put 40 in there. So that would mean the accrual should stop one they have accrued 40 hours. Why is it still accruing if they use some? Why isn't the accrual itself separate from what they use? The Available balance should not be used to determine if they have reached the maximum hours to accrue at all. The accrued balance from 1/1 through 12/31 should be held separately from the available balance. But it doesn't work that way. We have been complaining about this for 2 years and was told it was fixed in QB 2019. We bought QB 2019, but it still doesn't work. I have updated everything multiple times... no help at all. It should be a very simple fix. Someone in one of the post said that it is supposed to keep accruing if the available balance falls below the Max hours, but that is just foolish. The two are totally separate issues. If I am incorrect, I would love clarification.
Hi there, @Jen32.
The accrual should be stop once it reach the maximum set limits. I'd recommend reaching out our Customer Support Team. We can look into what's the cause of this accrual issue and investigate by our engineers.
Here's how you can reach out to us:
For more detailed and information you can check this link below:
If you have other questions, feel free to come back in the Community. Have a great day!