Question

Vacation accrual

Forum|Forum|5 years ago
May 25, 2021
4 replies
0 views

Hello,

I am using enhanced desktop payroll. Our employees accrue 1 hour of vacation time for every 51 hours they work. I have been unsuccessful in setting up this type of accrual in QB. Can you please help?

QuickBooks Desktop Payroll

M

MadelynC

I’m here to help set up vacation accrual in QuickBooks, @accuratemetal.

In QuickBooks Desktop, vacation accrual depends on your paid time off policy. That means you need to set up a policy first before your employees can take time off.

Here's how:

Go to the Lists menu, then Payroll Item List.
Select Payroll Item ▼ dropdown, then New.
Choose Custom Setup, then Next.
Pick Wage, then Next.
Choose Annual Salary or Hourly Wages, then Next.
Click Vacation Pay, then Next.
Enter a name for the item, then Next.
Choose the expense account you want for the item, then Finish.

You can use this information to set up and track time off for your employees in QuickBooks Desktop Payroll.

Please know that your employee's PTO calculation depends on how you set it up in the program or how it will accrue.

Let’s say 40 hours which is the most common hours of work per week. You can refer to the steps below on how it's calculated in the program:

Figure out how many hours your employee works in a year.
Multiply it with the number of weeks in a year.
- 40 hours (Hours in 1 work week) x 52 weeks = 2,080 hours
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
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.

I’ve attached some resources that provide more information about vacation time:

Let me know if you have any additional payroll questions or concerns. I'm always here to help you out. Have a great day!

A

accuratemetalAuthor

This does not help me. Our employees earn 1 hour of paid time off for every 51 hours they work. We pay weekly. Some employees work full time, some work overtime, some are part time.

Kristine Mae

Let me help you from here, Accuratemetal.

First, you'll have to set up Every hour on paycheck as the accrual period to achieve your goal. Next, decide how many hours you would want your employees to get each year if they will be working a regular full-time schedule. Then, we'll have to figure out how many hours your employees would work in a year if they'll be working full time.

Feel free to check the articles provided by my colleague at the top to guide you better.

If there's anything else that you need, don't hesitate to let us know. We'll reply as soon as we can.

A

accuratemetalAuthor

I guess i am not understanding.

Our employees do not have a cap on overtime. They work as little or as much as they want. Some employees work 60 hours per week. Some only 38. Our companies accrual policy is 1 hour of paid time off for every 51 hours the employee works. It is completely up to the employee on how much pto they get. They can work as many hours as they want and accrue pto faster.

D

DebSheenD

Hello, accuratemetal.

I appreciate your time in sharing your concern here in the Community.

Let me share some insights about vacation accrual.
Vacation accrual depends on your accrual policy, you've mentioned that your companies policy is 1 hour of PTO for every 51 hrs. of employee works. That means you need to set up a policy before your employee can take the PTO.

Here's how:

Click Lists, then Payroll Item List.
Select Payroll Item ▼ dropdown, then New.
Click Custom Setup, then Next.
Choose Wage, then Next.
Select Annual Salary or Hourly Wages, then Next.
Click Vacation Pay, then Next.
Enter a name for the item, then Next.
Choose the expense account you want for the item, then Finish.

You can use this link for additional information on how to set up and track time off in payroll in QuickBooks Desktop.

I've also added this article that can help you on how to fix sick and vacation time incorrect or not accruing on paychecks.

Let me know if you have additional concerns in managing your employees. I'm one post away.

W

WYO2021

Just go to Edit (top bar)
Preferences
Scroll down to "Payroll & Employees
Click "Company Preferences" at the top
Click "Sick and Vacation Time" on the right
Choose Every Hour on Paycheck in the Accrual period dropdown list

Put 00:02:00 in the Hours Accrued per Paycheck box
Put your Maximum if you have one or leave blank - if it makes you put something put 2080 hours
Make sure to check the Sick and vacation hours paid box at the bottom so employees aren't accruing vacation time on vacation time.
Click OK on the top right.

That's it! 😁 I attached a pic to help you.

T

Tracy_K

Thank you, this works for Minnesota's new Earned Sick and Safe Time which states employees must earn 1 hour per every 30 hours accrued. For QB hours accrued per hour paid: the calculation is 1 hour worked divided by 30 hours earned = .3333 decimal hours, then covert this to time: .3333 = 00:02:00 hours so to verify the calculation will work, 2 minutes earned for every 1 hour worked is 2 minutes x 30 hours (MN ESST) = 60 minutes (1 hour) earned. In QuickBooks desktop Sick and Vacation, enter 00:02:00 in the hours accrued per hour paid field.

L

lwilkerson

Did anyone ever resolve this? The answers given here were not based on time, but fractions of hours. Based on what I see, you would need to enter 1 minute 11 sec (0:01:11) accrual per hour to get the 1 hour (plus 21 seconds) per 51 hours of vacation time.

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