Holiday Pay in QB Desktop

We can enter employee's holiday pay by adding a new payroll item designated for this purpose, Deb2021. I'm glad to show you how.

To begin with, let's generate the holiday pay item by utilizing the Employees menu. Kindly follow the steps below:

1. Open your QuickBooks Desktop (QBDT) company file.
2. Go to the Employees menu and navigate to the Manage Payroll Items tab.
3. Click New Payroll Item and select Custom Setup. Then, tick Next and then Custom Setup.
4. Pick Wage and then Next. Following that, choose Annual Salary, then Next.
5. Select Regular Pay and then Next.
6. Enter Holiday Pay as the item's name and then Next.
7. Use Payroll Expenses as its Expense account and hit Finish.

After the creation, we can track and apply it by adding this item to your employee's payroll settings:

1. Go back to the Employees menu and select Employee Center.
2. Navigate to the Employees tab and double-click your employee.
3. Select the Payroll Info and add the Holiday Pay item in the Earnings section. Then, modify its Hourly/Annual Rate.
4. Click Done to save.

Once your employee uses their holiday privilege, you may issue a paycheck for that employee separately for this specific reason or include it on their Regular Pay:

1. Revert to the Employees menu and pick Pay Employees.
2. Put a checkmark on the employee and double-check and modify the Holiday Pay and Hourly (if you don't want to issue a separate check for the holiday pay) columns accordingly. Then, click Continue.
3. Once set, hit Create Paychecks.

For future reference, I'm adding this article to help you assign or update pay schedules in QuickBooks: Set up and manage payroll schedules.

You can always post here in the Community forum if you have more concerns with employees' holiday pay or questions about any parts of your Payroll in QuickBooks. I look forward to assisting you again.