I'm setting up a vacation policy in QBO Core Payroll. The company has a maximum accrual per year AND, because they allow carryover of some unused hours, a maximum total accrued. IN QBO Core, the maximum field applies to total accrual only. As a result, I cannot limit the current year accrual and reflect the total accrual for each employee. Is there a work around to this issue? Does Premium Payroll provide for this policy scenario? Carryover of unused vacation hours is a pretty standard employer practice.
The policy for years of service 0-3 is to accrue .02 hours per each hour worked up to a maximum of 40 hours per year. A maximum of 40 hours can be carried over from the previous year, so the maximum total accrual is 80 hours.
In establishing the new policy, the company is crediting employees with prior service. Two real-time examples:
Employee #1 - has already accrued 40 hours for current year, plus has 29 hours carryover from 2019, for a total current balance of 69 hours. This employee will not accrue any more vacation hours in the current year.
Employee #2 - has already accrued 30 hours for current year, plus has 20 hours carryover from 2019, for a total current balance of 50 hours. This employee can accrue 10 more hours before reaching annual maximum.
Thanks for your help!
Hi there, strdwmn.
In QuickBooks Online Payroll, the maximum hours allowed is the total hours that the employee can get.
An employee's vacation time balance will automatically carry over into a new calendar year. For example, an employee received 80 vacation hours per year, with a maximum of 320 hours. The employee's vacation balance will continue to accrue until 320 available hours are reached, even if the period extends over several years. That said, I'd suggest making sure that you enter the hours per year and the maximum allowed hours under the Accrual section.
For additional information on how to add your salaried employee’s sick pay or vacation pay hours using QuickBooks Online Payroll, you can click this article: Enter sick pay or vacation pay hours for salaried employees.
For additional assistance with setting up vacation accrual maximum, I'd suggest contacting our QuickBooks Payroll Team since you're using the Core payroll. They have the tools to pull your account to help you in setting up your employee's information.
Please refer to this article to see different information about salaried employees and how you can determine the hourly rate for salaried employees: Common questions about payroll and salaried employees.
Please let me know if you have more payroll questions,strdwmn. I'd be glad to help. Take care!
Thank you ChristieAnn, I understand how the accrual maximum is working as you explained, but your response does not address the issue of current year maximum accruals. Let me explain further:
The problem is:
1. How to stop accrual each year when the annual maximum accrual has been reached, AND
2. Reflect total accrual (current year + carryover) on paychecks and in reports
I hope that clarifies my problem.
Let's check on this, strdwmn.
We can set a Maximum allowed hours for the Time off Policy through the Payroll Settings.
After that, we can manually enter the employee's current time off hours available.
The necessary articles related to time off policies were already provided on the earlier responses.
If you have the same issue, you can contact our Payroll Support Team. They can review your account and will provide you additional assistance in setting your employee time off hours. You can reach them through this link: Contact QuickBooks products and services Support.
We'll be right here if you need anything else.
It's my priority for you to set up your time off policy in QuickBooks Online (QBO), klortega.
We can go to the Pay Policies section to update your employee's time off. Let me show you how:
For more details about this one, see Set up and track time off in payroll article. If the same thing happens, try opening your QBO account using a private or incognito window. This mode doesn't use the existing cache data and helps us confirm browser-related issues. Here's how:
If it works, we'll have to go back to your regular browser and clear the cache to delete those temporarily stored files and browsing history. The overtime collection of data can create corruption, however, removing this should fix the issue. You can also use other supported, up-to-date browsers to roll out the possibility of a browser-related issue.
Feel free to visit our Payroll page for more insights about managing your payroll on your business.
I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. You have a good one.