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lmbart
Level 3

Quickbooks Time Accrual Methods and Annual PTO Cap

I am struggling to figure out how to configure paid time off in QuickBooks Time for the PTO plan our company has.  Here is the criteria:

 

PTO is accrued based on the number of hours worked in the pay period.  The cap on the amount accrued is dependent on how many years of service an employee has. 

Years of Service

Accrual Rate (per hour worked)

Maximum Annual Accrual in Hours

< 1 year

.0289

60

1 - 4 years

.0481

100

5+ years

.0674

140

At the end of the pay period prior to the employee’s anniversary date, the PTO balance available will be reviewed.  Based on the ending anniversary year balance, the employee will have the option of paying out up to 50 hours AND carrying over up to 50 hours into their new anniversary year.  Any remaining balance above the payout and carry over (over 100 hours) will be forfeited.

 

As far as I can tell is is NOT possible to have a CAP on how much PTO can be earned if you are allowing the employee to earn based on hours worked in a pay period. I would like all employees to be capped at the stated amounts above REGARDLESS of whether they work 40 hours per week or 60 hours per week.  The 60 hour per week employee earns the max faster than the 40 hour per week employee and that is fine, but we don't want them to earn more than the 40 hour person just because they choose to work more hours.  The way I have been getting around this is by manually subtracting each pay period, the "over earned" hours for any employee working greater than 40 hours per week.  It's a pain.

 

In QuickBooks Desktop it DOES allow you to set up a CAP on accrual, see the yellow box in the attached screenshot.  With that said, I don't understand how that rule can be set up in QBD and still work with QBT.  Can someone please help me?!?!

 

PS, the "max balance" option in QBT does not work for this scenario as the system will allow a person to use the PTO, bringing the balance down and then allowing the employee to earn more.

 

I just can't believe we are the only ones with this type of earing plan.  Can a suggestion be put in for improvement? 

1 Comment 1
CamelleT
Moderator

Quickbooks Time Accrual Methods and Annual PTO Cap

Yes, lmbart. You can submit a suggestion for improving the configuration of QuickBooks (QB) Time Paid Time Off (PTO).

 

Given that the max balance option in QB Time doesn't meet your needs, I suggest sending your recommendation about improving this functionality to our product engineers. Here's how:

 

Through the web dashboard

 

  1. Sign in to QB Time and click Help.
  2. Select Suggest Idea.
  3. Enter your product recommendation and hit Send Idea.

 

However, if you're on the Workforce app or website, please refer to this article to send feedback for QB Time: Submit feedback.

 

Additionally, I'll share a helpful resource that demonstrates how to effectively manage employee time off, including notifications through your QB Time web dashboard: Set up and Manage Time Off.

 

If you have other questions about handling PTO in QB Time, feel free to comment below. We're always here to assist.

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