PTO Calculations - Employee daily hours vary

Hello there, @Saphire605.

Let me share some information on how QuickBooks handles the calculation of your employee's Paid-Time-Off.

With QuickBooks Desktop, your employee's PTO calculation depends on how you set it up in the system or how it will accrue.

Base on your calculation, since your employee's working hours vary, their paid time off is directly dependent on their hours worked. Just make sure to enter the  maximum number of hours each employee should work per week.

If it's 40 hours per week ( the most common hours work per week), here's how:

1. Figure out how many hours your employee works in a year.
2. Multiply it with the number of weeks in a year.

   40 hours (Hours in 1 work week) x 52 weeks = 2,080 hours

3. Subtract the number of hours amount allocated for PTO.

   2080 hours – 40 hours (Allocated PTO) = 2,040 hours

   2,040 hours – 40 hours (5 paid vacation days off = 40 hours) = 2,000 hours per year

4. Divide the number of allocated vacation hours by the total hours per year .

40 hours (Hours in 1 work week) ÷ 2,000 yearly hours worked = .02 hours

By using the following calculation, it means your employee will earn .02 hours of PTO per day.

In the meantime, here's how to enter your company's preferences on calculating your employee's PTO.

On the other hand, here's how to set up your employee's individual PTO:

1. Go to the Employees menu and click the Employee Center.
2. Double-click the name of the employee on the Employees folder.
3. Click the Payroll Info tab on the right side.
4. Select the Sick/Vacation tab.
5. Fill in the details for hours available and hours used on the Sick information.
6. Click the drop-down arrow for Accrual period and select Every hour on paycheck.
7. Enter the Hours accrued per hour paid.
8. Click OK after filling in the other details.

Should you have other questions about managing your employee's PTO calculations, feel free to visit the Community. I'm always here to help.