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Sick and vacation accrual

Is there a way for sick and vacation accrual to show up as amounts instead of hours so we can track the amount outstanding on our balance sheet per employee??  Right now all we have is journal entries that the CPA has put in because amounts are showing up.

11 Comments
QuickBooks Team

Re: Sick and vacation accrual

Hello tmons,

 

You can pull up your Payroll Summary report to view the total sick and vacation amounts. Then, use your Balance Sheet report to track these amounts. Let me guide you through how.

  1. Click Reports. Then, click Employees & Payroll.
  2. Click Payroll Summary.
  3. Click the Customize Report button.
  4. Click the Filters tab.
  5. Scroll the Filter drop-down and choose Payroll Item.
  6. Click Multiple payroll items drop-down and mark Sick Hourly and Vacation Hourly.
  7. Click OK. Then, OK in the Modify Report window.

Make sure you have the same dates on both reports.

 

Please see attached screenshot below.

 

You can read this handy report for more information about reports: Customize reports in QuickBooks Desktop.

 

I've added our page in case you need articles of your future tasks: Reports and accounting.

 

You can always swing by if you need help with anything else.

 

 

Not applicable

Re: Sick and vacation accrual

Thank you so much!!!  Looks like I will need to run 2 reports to get what I need but at least I'll have that info for the boss!!!  Is there no way to get that information into the Chart of Accounts??

Not applicable

Re: Sick and vacation accrual

Thank you so much!!  Looks like I'll need to run 2 reports to get that info for the boss but at least she'll get it!  Is there no way to get that into the Chart of Accounts?

Moderator

Re: Sick and vacation accrual

Welcome back to the Community, tmons.

 

It's currently not available because the register lists the actual paycheck's amount (and other transactions). However, I can definitely send it in as feedback to our Product Developers Team. 

 

In the meantime, please follow the steps suggested by ShiellaGraceA. 

 

In case you need more help with creating payroll reports, please refer to this link for a reference.

 

Please keep us posted if you have any report questions or anything else. 

Not applicable

Re: Sick and vacation accrual

Actually, our Chart of Accounts doesn't list anything.  Our CPA has to do a Journal Entry for anything to show up.  Is that the way QuickBooks is set up to work??

Moderator

Re: Sick and vacation accrual

Thanks for coming back to the Community, tmons.

 

Yes, that's how the Chart of Accounts works. You'll see the paycheck list on that page. 

Rest assured, I'll personally share this idea with our developers.

 

On the other hand, you'll only use a Journal Entry (JE) if you enter debits and credits manually. Transferring money between income and expense accounts can also be done using JE.

 

For more information when to use Journal Entry, you can check this article: Create a Journal Entry.

 

If you have other concerns, please let me know. I'm here to help you out.

Anonymous
Not applicable

Re: Sick and vacation accrual

There is a way to do this with each payroll.

 

It requires creating and using a company payroll item to hold the accrued vacation dollars:

 

Set up a new Company Contribution payroll item:

- Call it something like Vacation Accrual.

- Change the liability account on the item to an account used just for this liability, perhaps caslled "Vacation Liability".  The liability account will hold the Vacation funds to be paid out. The expense account will expense the Vacation pay as it is accrued, which is appropriate as vacation is owned by the employee.

- The tax tracking type should be None.

- Leave the tax-ability alone (does not impact any taxes.)

- Probably don't use a default rate or limit on the item.

 

Add the item to employees:

After saving the item, edit each employee and add the new item to the employee in the Additions, Deductions, and Company Contributions table on the the Payroll tab.

 

Enter the Amount to accrue:

- If you accrue 80 hours per year and pay every other week, then the hours to accrue per check are 80 hours / 26 paychecks per year or 3.07692 hours. Use similar math to get your hours to accrue.

- Enter the amount as the employee's hourly rate * the hours to accrue.  For example if the employee makes $20 per hour, then enter $61.54  ($20 * 3.07692) in this case.

 

Edit existing Vacation pay item(s):

Next, change the Vacation Pay earning item(s) to use the same liability account as the accrual item just set up.  (Do NOT update existing transactions is asked if you want to.)

 

Pay Employees:

Now, when you pay the employee, $61.54 will be accrued as a liability and an expense for the vacation.

After setting this up, then when you pay employees your vacation pay expense and liability will go up and when you pay out vacation your liability will go down.

 

This method will require a reconciliation/adjustment entry in some cases.  For example, if you accrue the vacation at one rate, say $20 per hour, but the employee gets a raise before taking vacation.  In this case you'll pay out vacation at (for example) $22 an hour, decreasing the liability more than it was once increased.  So, every so often it's a good practice to enter an adjustment in the liability register to balance it out to handle such cases.

Not applicable

Re: Sick and vacation accrual

So I just ran this report and put it into another report I am needing to do for my boss and what this gives me is the amount of leave they have already taken NOT what they have accrued to date minus what they have taken.  I need a report of how much sick and vacation they have yet to take and how much that will cost when they will take it - or how much it will cost us if they leave.  Is there a report that will give me that information??

QuickBooks Team

Re: Sick and vacation accrual

Hello there, @tmons.

 

Yes, you can pull up your employee's sick & vacation history using the Employees & Payroll report. I'll show you how to do it.

 

Here's how: 

  1. Click Reports at the top menu bar.
  2. Click Employees & Payroll and choose More Payroll Reports in Excel.
  3. Select the Employee Sick & Vacation History.
  4. Filter the Dates and hit Get QuickBooks Data.

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Also, for cost you'll need to calculate it manually just multiply the rate with the remaining hours.

 

For future reference, you can read these articles below:

If there's anything else I can help you with, feel free to comment or post again here in the Community!

Community Contributor *

Re: Sick and vacation accrual

Is there a way to set vacation and sick to accrue monthly if you pay payroll bi-weekly in QuickBooks?

QuickBooks Team

Re: Sick and vacation accrual

Thanks for reaching out the Community, @Mikki4.

 

Currently, there isn't a way to set up the sick and vacation time to accrue monthly and pay the payroll bi-weekly. The accrual period for sick and vacation leave can be set at three (3) choices:

 

  • Beginning of Year - Grant a certain number of hours that the employee can accrue over the course of a year.
  • Every Paycheck - Accrue certain number of hours per paycheck.
  • Every Hour on Paycheck - Accrue hours on every paycheck.

To learn about the different ways to accrue sick and vacation in QuickBooks Desktop, you can check this article: Set up and pay sick and vacation time

 

Don't hesitate to drop by a comment below if you have any other questions. I'll be around to help.

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