How do I payout accrued vacation pay?

Hello Corinna,

Let me guide you on how you can pay accrued vacation pay in QuickBooks Online.

You’ll have to enter the employees accrued hours when you create their paycheques. And then, the total vacation hours will be deducted.

If you have not setup the vacation pay. Here’s how:

1. Click on the Gear icon.
2. Click on Payroll Settings.
3. Click the Vacation/Sick/PTO link below the Payroll and Services section.
4. In the Vacation and Sick Leave Policies box, click Create.
5. In the Category drop-down, select Vacation, enter a Description, select the Accrual Frequency, and then enter the Hours earned per year and the Maximum available hours.
6. Click OK.

Then run the payroll, paying the accrued vacation:

1. Click on Employees tab.
2. Click Run Payroll.
3. Enter all other pay types and the vacation hours.
4. Select Preview payroll and make sure to review vacation hours.
5. Click on Submit payroll.

To learn more about vacation pay, here are a few helpful article:

• https://community.intuit.com/articles/1764351
• https://community.intuit.com/articles/1770217

Feel free to drop a comment below if you have other questions. I’ll be sure to get back to you.

Another problem I have encountered is when paying out (every 6 months) in separate cheque (as that is how we do it)  It DOES not give the employee the full VP and a remainder stays behind why?

How do I payout accrued vacation pay for an hourly employee?