Reset Vacation Time at End of Year

I'm here to help you reset the employee's unused vacation time off in QuickBooks Online Payroll (QBOP), Stollen1954.

You can set up a new vacation time-off policy for the employee after running their last payroll this year. That way, the accrual will start tracking at the beginning of the year.

I'll show you the steps about how to modfy the vacation pay.

1. Go to Payroll from the left menu, then Employees.
2. Click the name of the employee, then select the Profile tab.
   
3. Scroll down and click Edit from the Pay types box.
   
4. Proceed to the Time off pay policies section, then make changes to the Vacation pay area.
5. Choose the Add new vacation pay policy option.
   
6. Complete the on-screen fields to create your policy, then click Save.

Once done, you can start tracking the employee's vacation time-off next year by creating a paycheck.

I'm adding this article to help you track the employees' time off, vacation, and sick pay: How to set up time off in payroll. It provides steps about how to to add more time or update the existing policy.

Since filing of taxes is coming, I'm adding these resources to help you wrap up and prepare this year’s payroll.

• Year-end guide for QuickBooks Online
• Year-end checklist for QuickBooks Online Payroll.

If you have additional payroll concerns, please use the Reply button below and tag me. I'll get back and answer them.

I set up our PTO/vacation policy, but I want to ensure that all accumulated PTO/vacation time reverts to zero on January 1st of each year.  How do I do that? @MaryLandT 

I'm glad to hear from you again, Stollen1954.

You can create a dummy paycheck to check if all accumulated PTO/vacation time reverts to zero after setting up the new policy.

Here's how:

1. Go to the  Payroll menu, then select Employees.
2. Click Run Payroll.
3. Select the desired payroll schedule, then Continue.
4. Choose Paper check to create a manual paycheck.
5. Select the employees you'd like to pay.
6. Enter hours, compensation, memos, or any other necessary paycheck info, then Preview payroll.
7. Click Preview payroll details or Submit payroll.
8. Select Finish payroll.

Make sure to delete the paycheck later after checking it. I've added this article for the detailed steps: Delete or void employee paychecks.

Get back to me if you have follow-up questions about this. I'm always around here in the Community forum to help  revert the vacation pay to zero.