Tiered paid time off schedule

Yes, it's possible, Tiffiny Taylor Krugh.

Setting up your own time off paid time off policy is an easy-peasy steps in QuickBooks Online. Let me guide you how:

Just a heads up, you'll have to manually calculate the conversion of five days (for example) into hours.

1. From the Payroll tab, select Employees.
2. Select your employee's name.
3. Under Employee details, click the edit (pencil) icon on Pay.
4. On the How much do you pay (employee's name)? section, click the + Add additional pay types (like overtime and sick pay) hyperlink.
5. Go to the Time off pay policies section.
6. On the Paid time off field, select Add new paid time off policy.
7. Select when will be the Hours are accrued.
8. Enter the Hours per year.
9. Enter a Maximum allowed time off.
10. Click Save and then Save.

If your client uses QuickBooks Time, they can as well  set up your time off policies there to match what they set up in their payroll account.

I've also added this reference that has detailed information when paying employees: 

That should do it, Tiffiny Taylor Krugh. You can always count on me if ever you or your client need extra help with QuickBooks. Have a good one!

That you Adrian_A.

Follow up.  According to your suggestion:

Select when will be the Hours are accrued. - "On Anniversary Date"
Enter the Hours per year. - "40"
Enter a Maximum allowed time off. - "120"

Would that not translate to an employee being granted 40 paid PTO hours per year regardless of how many years they have worked for the company?

I was hoping for this type of schedule:

0-1 Year of employment - 40 paid hours

2-4 Years of employment - 80 paid hours

5 + Years of employment - 120 paid hours

Thanks for the update after performing the steps provided by my colleague, @Tiffiny Taylor Krugh.

To further help you set up a tiered paid time off schedule in QuickBooks Online (QBO), you may consider looking for a third-party app that integrates with the program. Let me guide you how:

1. Sign in to your QBO account.
2. Then, navigate to the Apps menu.
3. From the search field, enter a keyword for the feature you need.
4. Press the Enter key on your keyboard.
5. You'll see a list of apps that suits your criteria.
6. Then, to check other user's feedback, simply click the app and go to the Reviews tab.

Monitoring your employee information and business finances is a breeze in QBO. To start, you can run any payroll reports you need. To give you a list of reports and an overview of what data they show, visit our Payroll reports site. 

I'm just a post away if you have further questions about setting up paid time off schedule in QBO. Feel free to leave a reply below. Have a good one and take care.