tracking paid time off

Chmm53 · ‎January 04, 2021

I need help with tracking time off. The employee has 90 hours of paid time off.

What do I need to do to track the time she takes off?

Is it done in her paychecks? I read all sorts of comments but none explains what I need to do in QB payroll to note when the employee takes a day off.

I believe I set it up correctly, I just don't know how to track the time used...

BigRedConsulting · ‎January 05, 2021

QuickBooks actually handles sick and vacation for salaried employees quite well.

For salaried employees, when set up and use sick and/or vacation salary type items (not Hourly), QuickBooks will automatically split the employee's salary for you. And, then when you record the paycheck it will automatically update the vacation and sick balances, and print them on the pay stub.

For example, if you have a salaried employee who is paid $1000 every week, then by default the paycheck earnings table will look like this:

Then add the Vacation Salary item to the check. QuickBooks will split the salary in half so the total salary is the same, $1000:

Next, based on the assumption that the salaried employee works a standard 8 hours per day (or, at least, that is how much vacation they use per day when they take it), enter the hours for each salary item, based on the number of vacation days. QuickBooks will recalculate the pro-ration based on these hours, and will reduce the Vacation available, in this case from 90 to 82 hours, and that will be printed on the paycheck stub:

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BigRedConsulting · ‎January 04, 2021

To track sick and vacation pay and balances,

First, set up the balances and the accrual methods on the employee records.

Then, set up and use sick and vacation pay items (as you set up an hourly or salary item you can pick the type of item it is, whether regular pay or sick or vacation.)

If you have only one category of paid time off, PTO, then usually this is tracked as vacation and you can change the label that is used on pay stubs to PTO or similar in payroll preferences.

Chmm53 · ‎January 05, 2021

Thank you for answering. I have never had to use sick and paid time off before and am really confused... The employee has 90 hours of vacation time. She gets a salary, not paid by the hour. So, if she takes a day off, she gets paid anyway. If I set up a payroll item for Vacation time, I would have to give it a Dollar amount per hour... and it would add it to her paycheck.... I just need to track how may hours out of the 90 she has used... Any idea? Thanks.

BigRedConsulting · ‎January 05, 2021

QuickBooks actually handles sick and vacation for salaried employees quite well.

For salaried employees, when set up and use sick and/or vacation salary type items (not Hourly), QuickBooks will automatically split the employee's salary for you. And, then when you record the paycheck it will automatically update the vacation and sick balances, and print them on the pay stub.

For example, if you have a salaried employee who is paid $1000 every week, then by default the paycheck earnings table will look like this:

Then add the Vacation Salary item to the check. QuickBooks will split the salary in half so the total salary is the same, $1000:

Next, based on the assumption that the salaried employee works a standard 8 hours per day (or, at least, that is how much vacation they use per day when they take it), enter the hours for each salary item, based on the number of vacation days. QuickBooks will recalculate the pro-ration based on these hours, and will reduce the Vacation available, in this case from 90 to 82 hours, and that will be printed on the paycheck stub:

Chmm53 · ‎January 05, 2021

Thank You. This is very helpful. But I have another question. We separate her salary by Class (she is part-time: 30 hours/week) 36 hours Program = $900 and 24 hours Administration = $600 (small non-profit). She gets $1500 Gross bi-weekly. How is this going to change the way I enter the vacation time?

BigRedConsulting · ‎January 05, 2021

RE: How is this going to change the way I enter the vacation time?

The only thing I can think of that might be different is if you want the vacation to also be split by class, and not assigned to just one class (or no class), then you'll need to enter two rows for the vacation salary item, each with its own class and the appropriate hours for that class.

clavoie · ‎February 16, 2022

Thank you. How do I change the label on the paystub from vacation to PTO? We offer PTO and Sick, but not vacation.

KlentB · ‎February 16, 2022

I can help you with that, clavoie

You can go to the Company Preferences section to change the labels in the paystubs. Here's how:

Go to the Edit menu.
Select Preferences.
Choose Payroll & Employees.
Select Company Preferences, then clickPaystub & Voucher Printing.
Edit the label of Vacation or Sick field.
Click OK to save the changes.

I'm also adding this article to learn how to print pay stubs while you're working in QuickBooks Desktop: Print pay stubs.

Drop me a comment below if you have any other concerns or follow-up questions. Have a good one.

clavoie · ‎February 16, 2022

That worked! Thank you!!

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