Level 2

Employees and payroll

Hi James,


I too am switching over from Sage 50 and want to make sure I understand things correctly.

You say that with Standard Payroll, QBO will not show Vacation accrual as a liability and if I understand correctly, is shown as a wage expense as it is paid out.

How then do I account for and track the outstanding liability (i.e. the amount the company is legally obligated to pay at some point) of outstanding unpaid vacation accrual?
It's a line item, with a balance, in my current chart of accounts.  Do I have to manually adjust it with a general journal entry?

Or do I need to upgrade to something other than Standard Payroll, for complete accounting of vacation accrual?