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Paid Time Off Per Hour Worked
I had noticed while doing payroll the other day that an employee who had been using their Sick Pay more often than some others, still had nearly 30 in reserve, which shouldn't have been the case, since they should have maxed out accruing sick/vacation hours by that time. What I realized was that while most employees had maxed out their hours, the ones who had been using them, continued to accrue back up toward the maximum set. This is obviously unfair to other employees and seems to be a glitch with QB's settings. The only other option is to give employees 40 hrs at the beginning of the year/ or beginning the date they start work, which is not preferred, because the new employees have not yet earned the time off. The Sick Pay option in QB gives the illusion that the accrued hours will max out at the allotted set, but it is deceiving and surely has not been noticed by many business owners utilizing QB Online. It would be very appreciated to our store, and certainly all other businesses utilizing QB, if the accrual method (per hour...as required by law) and 'max out' setting could be revised to max out 'per year' and not simply until an employee utilizes them. Essentially, that is allowing for 'Unlimited' sick/vacation pay to be accrued. If that was the setting we were looking for, we would have selected that in the options. I was wondering if anyone else had encountered this issue and possibly found a remedy?
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Employees and payroll
I thank you for sharing complete details about your concern, @greenstreetkw.
When setting up a Sick Pay policy, you have 5 options on how you'd like the sick pay hours to accrued.
- At the beginning of the year
- Each pay period
- Per hour worked
- On anniversary date
- Unlimited
You'd want to review your account's sick pay policy assign to each of your employees. This way, we can make sure that it is showing and accruing accurate information. Here's how:
- Go to the Workers menu.
- Choose the Employee tab.
- Double-click on the employee's name to open his or her profile.
- Click the pencil icon next to Pay.
- Scroll down to the How much do you pay (employee's name) section, click the pencil icon for Additional pay types: Sick Pay.
- Checked Sick pay and choose the sick pay you've created.
- Click Done.
You can repeat the same process for each employee. Just a heads-up, setting up a maximum allowed accrued hours on your employees' sick policy automatically stops QuickBooks in accruing hours when they reach the limit. Though, it's not set up as a per year feature. It will just stop when it reached 24 hours.
Feel free to visit us here if you have other questions about managing your employee's payroll information. I'm always here to help.
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Employees and payroll
Hello IamjuViel,
Thank you for response. The problem is, that I did exactly what you have shown above. The issue was that I have the Max hours set at 40, which the accrual will STOP at. BUT, if the employee decides to use their sick time a day, week, or months later...once they use it, rather than STOPPING the accrual because the employee has already reached the allotted amount for the year, it will BEGIN to accrue again. So, if the employee had reached 40hrs and used 20hrs for PTO, by the next paycheck, it would begin to accrue hours again. So, rather than the total for the year being 40hr, it would be 40+ (the original 40 plus the newly accrued hours on top of that). That would make the total for the year 45...56...62. It would just never show above 40 in QB. The weird glitch ends up penalizing employees who have not used their paid leave and greatly benefitting the employees who have.
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Employees and payroll
Hello IamjuViel,
Thank you for response. The problem is, that I did exactly what you have shown above. The issue was that I have the Max hours set at 40, which the accrual will STOP at. BUT, if the employee decides to use their sick time a day, week, or months later...once they use it, rather than STOPPING the accrual because the employee has already reached the allotted amount for the year, it will BEGIN to accrue again. So, if the employee had reached 40hrs and used 20hrs for PTO, by the next paycheck, it would begin to accrue hours again. So, rather than the total for the year being 40hr, it would be 40+ (the original 40 plus the newly accrued hours on top of that). That would make the total for the year 45...56...62. It would just never show above 40 in QB. The weird glitch ends up penalizing employees who have not used their paid leave and greatly benefitting the employees who have.
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Employees and payroll
I wish I could make it better, @greenstreetkw.
Since the issue persists even after following the suggestions above, I'd recommend contacting our Payroll Care Team. From there, a specialist can pull up your account, securely, and further investigate the root cause of this unexpected behavior with their tools.
To do so, you can follow the steps below to reach out to our dedicated support:
- Go to Help.
- Select Contact Us.
- Enter Employee paid time off - Incorrect accruals in the What can we help you with? field.
- Click Let's talk.
- Choose a channel where you wish to connect with our team.
Additionally, you can also browse for the content of this helpful article to get a better view of how our business's doing while working with your payroll: Reports available in QuickBooks Online Payroll.
If you have any other questions, please let me know in the comments below. Stay safe!
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Employees and payroll
Thank you, JonpriL. I will do that.