How do I set up Bereavement Pay in QuickBooks Online Payroll and QuickBooks Time?

Good news, @LDO: QuickBooks Online Payroll supports multiple time-off policy types, including Vacation Pay, Paid Time Off, Sick Pay, and Unpaid Time Off. You can assign more than one to an employee, so setting up bereavement will not affect your existing PTO policy. Since bereavement isn't a native time-off policy type in QBO Payroll, here are your two options:

Option 1: Set Up a Bereavement Time Off Policy in QBO Payroll (Recommended)

This is best for tracking bereavement hours with an accrual policy tied directly to payroll. Follow the steps below:

1. Go to All Apps, then select Payroll, then Employees.
2. Select the employee you want to update.
3. From Time off, select Start or Edit.
4. Select Add new time off pay policy from the dropdown menu.
5. Complete the on-screen fields, then select Save.

Option 2: Create a Bereavement Time Off Code directly in QuickBooks Time

This is best for when your primary goal is employee-facing time-off requests and hour tracking in QuickBooks Time, with the pay handled separately at payroll run time. Here are the steps:

1. Go to Feature Add-ons, then Time Off Codes.
2. Select Add New.
3. Enter the name of the Time Off code and choose whether it is Paid or Unpaid.
4. Select Assign to Individuals or Groups, make your selections, and select Save.

Important: Once saved, the type can't be changed — a paid code can't be edited to become an unpaid code. Double-check your selection before saving.

Which option is right for you?

Since you use QuickBooks Online Payroll Premium and QuickBooks Time together, either option can work — it depends on whether you want bereavement managed as a payroll policy (Option 1) or as an employee-facing time tracking code in QuickBooks Time (Option 2).

Helpful resources:

• Set up and track time off in QuickBooks Payroll
• Set up and Manage Time Off in QuickBooks Time

Still running into issues after following these steps? Drop a reply below and we'll help you get it sorted out.