Holiday pay being treated like vacation pay

QuickBooks Desktop only supports one vacation pay item per employee, Border Collie Boy.

You can set up the holiday pay as a non-hourly payroll item, so it won't be deducted from the vacation accrual.Then, manually track its accrual so you'll know how many holiday hours the employee have earned so far. You can use the payroll summary report to help with this: Create A Payroll Summary Report. 

More details about tracking vacation pay are provided in this article: Set Up And Pay Sick And Vacation Time.

I'll send a feature request about being able to add a holiday pay in QuickBooks Payroll. Our engineers are still collecting and reviewing feedback to check if they can be part of the future updates. 

Visit us again or post questions in the Community if you require additional assistance when running payroll. 

Thanks for the quick reply!  I'll look into the approach you suggest.

@JenoP 

RE: QuickBooks Desktop only supports one vacation pay item per employee, Border Collie Boy.

That is not correct. You can use as many vacation items as you want to set up and use, all with one employee if desired.

RE: You can set up the holiday pay as a non-hourly payroll item, so it won't be deducted from the vacation accrual.

Holiday pay is compensation, and normally will be tracked as a Salary or Hourly item, in parallel with the employee's normal pay type.

RE: Then, manually track its accrual so you'll know how many holiday hours the employee have earned so far.

Holiday pay isn't normally accrued, but just paid out when there is a holiday.

Yes, this happens when the holiday pay item is inappropriately set up as a vacation item.

In this case, stop using the offending item and set up new standard non-vacation hourly or salary items to use for holiday pay.

You can add 20 - 100 hourly or salary items to an employee, depending on your QB SKU.  Do you already have that many items on your employees (it's unusual.)

Thank you for this reply.  I apologize for being tardy in my "thank you".  I'm new to the community and promise to do better!

That would be not only unusual but really stupid.  Nope, we just have about 20 payroll items.  Less is more.

Just ran into this today, first time in all the years of actually having to look at how many hours of PTO used and expected to see only actual Vacation Pay but instead it includes ALL vacation, sick, bereavement, holiday as a single number of vacation hours.  I take that back, sick hours are separated on the excel report for Time Off.

I am going to have to add, I guess, Paid Holidays (such as the recognized federal holidays) as a NON-PTO item. which in a way seems ludicrous

Actually, I found exactly the break-down by item shows in the Payroll Summary Report, despite the Paid Holiday being deducted against any accrued Vacation Pay