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C
chantelsoutham
September 9, 2020
Question

Paid time off setup

  • September 9, 2020
  • 1 reply
  • 0 views

I have a client who is going to begin paying PTO.  It will start accruing on 10-1-20 for all employees, based on the number of hours worked.  Where do I go to set up the rate at which it accrues?  I set up a paid time off vacation category in Payroll Item Lists.  Do I set up the accrual rate somewhere in employee setup?

    1 reply

    N
    Nick_M
    September 9, 2020

    Hi chantelsoutham. 

     

    I'm happy to help you set up the PTO for your client. Follow these steps below:

    1. Select Lists, then Payroll Item List.
    2. Select Payroll Item ▼ dropdown, then New.
    3. Select Custom Setup, then Next.
    4. Select Wage, then Next.
    5. Select Annual Salary or Hourly Wages, then Next.
    6. Select Sick or Vacation Pay, then Next.
    7. Enter a name for the item, then Next.
      Note: If you use time off you can rename this item to TO.
    8. Choose the expense account you want for the item, then Finish.

    If you have any other questions, feel free to post below. Thank you and have a nice afternoon. 

    C
    chantelsouthamAuthor
    September 9, 2020

    I have done the steps listed.  However, where do I tell the program at what rate to accrue the PTO?

    R
    ReyJohn_D
    September 9, 2020

    I have additional steps to ensure you can accrue this Paid Time Off (PTO), @chantelsoutham.

     

    First, you'll need to ensure the Do not accrue sick/vacation pay box is unchecked on the Preferences page. This way, you can tell QuickBooks Desktop (QBDT) to accrue your PTO later on. Here's how:

     

    1. Go to the Edit menu at the top, and then select Preferences.
    2. Choose Payroll & Employees, and then tap the Company Preferences tab.
    3. Click Sick and Vacation, and then verify if the Sick and vacation hours paid under Sick and Vacation Accrual is unchecked. If not, you'll have to uncheck it.
    4. Hit OK when you're ready.

    To tell QBDT at what rate to accrue the PTO, you'll just have to go to the Employees menu. Let me guide you how:

     

    1. Click the Employees menu at the top, and then select Employee Center.
    2. Choose the employee name, and then double click it.
    3. Pick Payroll Info, and then select Sick/Vacation.
    4. Enter the number of hours that are currently available for the employee in the Hours available as of mm/dd/yyyy field. Note: This is the total amount of hours available as of the date you add sick or vacation to the employee profile.
    5. Pick the Accrual period drop-down menu and then choose one of the three accrual periods for sick time.
    6. In the Hours Accrued field, enter the number of hours that will be accrued (based on your selection in step 4).
    7. You may also enter the maximum balance of sick hours that the employee can have in the Maximum number of hours field.
    8. If you don't allow hours to roll over to the next year, choose “Reset hours each new year?”.
    9. Enter the start date of the accrual year. Note: Use January 1 for a calendar year or hire date if accrual happens on an employee's anniversary date.
    10. Input the date that sick time should begin accruing.
    11. To specify accrual information for vacation hours, repeat steps 4 through 10 for the Vacation section of the window.
    12. Hit OK to record your changes.

    For more info, please read through this resource: Set up and track time off in payroll.

     

    I'll be adding this article as well in case your sick and vacation time off won't accrue: What to do if time off won't accrue.

     

    To keep track of your time offs, you can run the Paid Time Off List report. Just go to the Reports menu, choose Employees & Payroll, and then select the report from there.

     

    Please let me know in the comment section if you have more questions. Have a good one.

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