Vacation calcuations for hourly employee using assisted payroll

I recommend that you stop letting your employees miss meal breaks. It's probably illegal.

In any case, you can change a preference so that accrual by the hour doesn't include sick and vacation hours. Do this from the QB menu at Edit | Preferences | Payroll & Employees | Company Preferences | Sick & Vacation.

For the missed meals pay, use an Addition item that is set to Compensation and is based on quantity, and those wages then won't be considered hourly pay.

Ensuring that your sick and vacation policies are set up correctly is our top priority, DilipPately. This will allow you to maintain accurate records and avoid discrepancies in employee benefits.

When setting up payroll for hourly employees, let's make sure that these types of hours are configured correctly.

Here's how:

1. Navigate to Edit in the top menu, then select Preferences.
2. Click on Payroll & Employees from the list.
3. Under Company Preferences, find the section for Sick and Vacation.
4. Under Do not accrue employee sick and vacation hours, select Sick and vacation hours paid. 
5. Once done, click OK twice.

Moreover, if you want to create a personalized report for your employees' vacation and sick time, check out this resource for a complete guide: Create a Sick and Vacation report for employees.

I want you to know that the Community team is always here to assist you with any future QBDT inquiries. If you have questions about managing your vacation and sick pay for your employees, reply below. We're dedicated to providing the support you need every step of the way.