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advance2201
December 15, 2022
Question

How do you record year end PTO on paycheck?

  • December 15, 2022
  • 1 reply
  • 0 views

I'm curious how others handle this situation for PTO that expires each year on 12/31.

 

We are paid bi-weekly.  Our last pay period of the year overlaps 2022 and 2023 (12/26/22 - 1/8/23).

Our PTO does not roll over into the new year.

 

So, in order to get vacation to accrue appropriately in 2023, if someone has PTO for 12/26 - 12/30, our best solution is to record it on the prior pay check dated for 12/30/22 (pay period 12/12/22 - 12/25/22). 

Works okay for Salaried staff (since wages are not affected), however, if you have a part time person we have to 'add' hours to their paycheck for any accrued vacation that year.

 

Would love to hear how others address this. Maybe this is the best route to go.

 

Thanks!

1 reply

JessT
JessT
December 16, 2022

Hi advance2201!

 

Thank you for getting help with your employees' PTO. I'm happy to assist.

 

Yes, you can date paychecks in advance as long as you also give them to your employees on the check date, not in January. Otherwise, you may be questioned if your company will be audited. If you pay them in January instead, you can adjust the PTOs in their profiles before creating their paychecks. Then, make necessary adjustments again after creating the paychecks.

 

Both methods can technically be done in QuickBooks. However, I recommend consulting an accounting professional about the legality of PTOs so you can choose which one is right for your situation.

 

To adjust the balance of an employee's vacations hours:

 

  1. From the Employees menu, select Employee Center.
  2. Double-click the name of the employee.
  3. Click Payroll info and then Sick/Vacation.
  4. In the VACATION section, adjust the Hours available as of.
  5. Click OK and then OK again on the previous window.

 

Let me know if you have more questions about your employee's PTO. Take care and have a good one!

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