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Level 2

sick/vacation set up

Hello, can you help me with the settings, This is a small company (6 employees) and mgmt.  give us a maximum of 24 hrs. of sick time/year. Each year this time resets, so once 2020 is over if you did not use your sick days, they are gone. As for vacation time is very similar, each year they give you a max of 40 hrs.  so you have to use your vacation time in the same year . Since all employee have different hire dates, I am not sure how to reflect that in the settings. So this is what I have done , can you make the necessary corrections please? In this example this person has no available hrs. for sick days, nor he has vacation available.settings.jpg

1 Comment 1
QuickBooks Team

sick/vacation set up

Hello there, @BREF.


The Sick and Vacation hours used are based on the pay period end date of the paycheck. Also, the hours available as of date will update to the most recent paycheck pay period end date for the employee.


To create a paycheck with sick and vacation time, you'll need to set up sick and vacation time first. I'll show you how: 


  1. Click the Lists menu, then select the Payroll Item List.
  2. From the Payroll Item drop-down on the bottom left, choose New.
  3. Click Custom Setup, then Next.
  4. Choose Wage, then Next.
  5. Select Annual Salary or Hourly Wages (depending on whether you have salaried or hourly employees).
  6. Click Next. Select Sick or Vacation Pay, then Next.
  7. Enter a name for the item, then Next. If you're using the time off you can rename this item to TO.
  8. Choose the expense account you want for the item, then click Finish.


Once done, you can add the sick or vacation time to a paycheck. Here's how: 


  1. Open the Preview Paycheck window.
  2. In the Earnings section, go to the Item Name column, then choose the sick or vacation item you created in the drop-down.
  3. Enter an hourly rate in the Rate column and the number of hours in the Hours column for your hourly employees. If the time will be "unpaid," then set the rate to 0.
  4. For salaried employees, enter the number of hours worked next to the regular salary earnings item in the Hours column and the number of hours paid for sick/vacation time next to the sick/vacation salary earning item in the Hours column. 


QuickBooks will divide the salary rate accordingly once the correct number of hours is entered. Click Continue to create paychecks.


For your reference, check out this help article: Set up and pay sick and vacation time. It helps you learn about how to pay an employee with their sick leave hours.


Don't hesitate to leave a comment below if you have more questions. We're always around here to help. 



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