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michelle wells
June 8, 2020
Question

Holiday pay subtracting from vacation pay

  • June 8, 2020
  • 1 reply
  • 0 views

I noticed when I was doing payroll that the holiday pay I had given had subtracted from all of my employees' vacation hours accrued.  How do I fix that?

1 reply

Angelyn_T
Angelyn_T
June 8, 2020

Thank you for bringing this to our attention, @michelle wells.

 

This happens when the holiday payroll item was set up as vacation pay on the wages. In QuickBooks Desktop, you'll need to track the holiday pay separately from sick or vacation pay.

 

For now, we have to create a new payroll item and use this when running payroll. 

 

Here's how:

  1. Go to the Lists menu so you can click on the Payroll Item List tab.
  2. Tap the Payroll Item drop-down, then choose New.
  3. Press Custom Setup, then tap Next.
  4. Select Wage, then tap Next.
  5. Choose Annual Salary or Hourly wages, then tap Next.
  6. Select Regular Pay, then tap Next.
  7. In the Name used in paychecks and payroll reports field, enter Holiday Pay, and select Next.
  8. The default account for the expense is Payroll Expenses.
  9. Select Finish.

 

 

Let me know if you have any other questions by adding a comment below. I'll get back to you as quickly as possible. Have a great day ahead!

W
windrain
December 16, 2020

Hi

This works for not subtracting from vacation pay.

However, now I am seeing that vacation hours are being accrued on the Holiday pay hours. That were not worked. Hourly Staff get paid for them at their hourly rate even when not worked.

How can I set it up to do both?

MarsStephanieL
MarsStephanieL
December 17, 2020

Hi there, @windrain.

 

I'm here to help you avoid deducting the working hours from the actual accrued vacation hours.

 

You can add a payroll item and add it to the employee's earnings. You can choose the Hourly rate type and use it when running payroll so that it will not be deducted from the accrued vacation hours.

 

You may follow the steps mentioned by my colleague above. To know more about the details, you can check out this article: Sick and vacation time incorrect or not accruing on paychecks.

 

I'll be here if you need further assistance. Let me know in the comment section. Take care.

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