Salary Employee uses up more vacation than allotted, how do I deduct pay?

Hello TPInc,

Great question! I'm happy to help you with recording the vacation overage for your salaried employee. Whether you're using QuickBooks Online's Standard or Advanced Payroll service, there's a way to do this. I'll outline each of the options below.

Here are the steps to take for Standard Payroll.

1. Select Employees from the left menu.
2. Click Run payroll.
3. Click on the salary amount (in blue) for the employee in question.
4. Select Adjust salary this time only.
5. Enter in the amount of hours the employee went over in vacation. These hours will be unpaid and deducted from their normal salary.
6. Click Apply.
7. Proceed with running payroll.

That's all it takes.

Next here are the steps for Advanced Payroll.

1. Select Employees from the left-hand menu.
2. Click Run payroll.
3. Select the Pay group and click Next.
4. Click Process beside the appropriate Pay period.
5. Enter hours as usual for your hourly employees on the next screen. (Note: if no hourly employees are being paid, make sure to toggle to NO for the paying option). Click Next.
6. On the salary employee screen, follow these steps.
   1. Calculate an hourly rate by dividing the Normal Pay amount by the Hours automatically entered in the first column.
   2. Multiply the hourly rate calculated in the previous step by the vacation hours the employee went over.
   3. Subtract the Normal Pay minus the total from the previous step. Enter this in the Current Pay field.
   4. Subtract the preset Hours minus the hours the employee went over. Enter this new total in the Hours field in the first column.
   5. Ensure Pay is toggled ON and click Next.
7. Click View Details to show the payroll report and verify the calculations and other information. Exit out of that window when done.
8. Check the box I confirm that I have reviewed the details for this payroll, the hours, earnings and deductions for all employees. All numbers have been verified and are ready for final processing.
9. Click Approve.

Learn more about QuickBooks Online's payroll services here: Standard and advanced payroll features

To get a hand with any of these steps, feel free to get in touch with our support team using one of the following methods.

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Have a great evening!