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D
dlo-bdo
January 31, 2022
Question

Payout of vacation pay debiting payroll expense rather than vacation payable account

  • January 31, 2022
  • 1 reply
  • 0 views

I'm looking for assistance on how to get QBO to record the payment of vacation pay as a debit to the liability account. This particular employee is setup correctly as far as I can tell. They have hours and a dollar amount for vacation noted at the bottom of their previous paystub. (we posted an adjustment prior to recording the last two paychecks to setup the correct balance.)  The vacation payout was recorded, but it debited wage expense instead of vacation payable.  Other staff are sitting with negative hours and vacation payable amounts, so I'm not sure if they all need to be updated for QBO to work properly?

1 reply

T
Trish_T
February 1, 2022

Hi dlo-bdo,

 

Welcome to Community!  QuickBooks Online Payroll is an exquisite program for paying your staff with confidence.  Ensuring the vacation payout is applied to the correct account is essential with keeping your books aligned.  I'll be happy to provide the information you need so you're on the right track!

 

One of the things to check is the account mapping.  Here's how:

 

1. Click on the Gear in the top right and select Payroll settings

2. Under Preferences, open Accounting

3. Review the associated accounts and make any necessary changes

4. Hit OK when complete

 

Since the transaction has already taken place, you can create a journal entry to move the funds to the appropriate account.  I suggest reaching out to your accountant if you need assistance with this.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area.

 

If you have any other questions, please don't hesitate to reach back out.  We'd be glad to assist!

 

 

 

D
dlo-bdoAuthor
February 1, 2022

Thank you for your quick response.

I have reviewed the accounts associated to the payroll accounts and do not see anything that requires adjusting. The vacation pay is set to record to Payroll liabilities: Vacation pay account. Accrued vacation is going to this account, but vacation payouts are not reducing the liability.  

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