QuickBooks Team

Employees and payroll

You've come to the right place, brookeanne. The Community's here to help.

You can give an employee vacation pay by setting up a time off policy.

Here's how:

  1. In your top menu bar, go to Lists, then Payroll Item List.
  2. Use the Payroll Item ▼ drop-down and choose New.
  3. Click Custom Setup.
  4. Hit Wage.
  5. Pick Annual Salary or Hourly Wages.
  6. Elect Vacation Pay.
  7. Enter a name for your item. If you use time off, rename it to "TO".
  8. Choose an expense account.
  9. Select Finish.

Now you'll be able to add paid time off and make changes to your existing policy. When making updates to policies, be sure to tick the Do not accrue checkboxes if you don't want time accrued when paying vacation.

Please feel welcome in sending a reply if there's any additional questions. Have a great day!