I love that you've decided to take advantage of the new option within QuickBooks Online Payroll to choose not to track vacation for your employees. This feature is fantastic and enables users who track payroll outside of our software to continue to run payroll and pay their employees seamlessly. Let me explain how you can remove vacation balances from your employees.
Navigate to the Payroll menu and select Employees.
Choose an employee to edit from the employee list.
Click on their name, then select Edit employee.
Locate question 5, titled Let's create a new vacation policy.
You'll see the available vacation hours and balance, choose Make adjustments to edit this amount.
To remove the current balance, enter the number shown in the field provided, proceeded by a negative sign to indicate that you'd like to remove the balance.
Hit Done to save your changes.
Once complete, navigate to the Chart of Accounts and locate your Vacation Pay liability account. Select to view the Account history. You should now see a journal entry representing the adjustment that was just made. If you don't, please follow the steps above and ensure you've entered the adjustment correctly with a negative sign to subtract from the balance. If you adjust all employees to a balance of 0, this account will also show a balance of $0.00.
Let me know if you have any trouble following these steps. The process is straightforward so I'm confident you'll be successful in adjusting these balances. Have a great day!
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