Setting up time off

In QuickBooks Online, the "Maximum Allowed" setting caps an employee's current balance, not their yearly total. If an employee uses 10 of their maximum 40 hours (dropping their balance to 30), QuickBooks sees available space and automatically starts accruing more time again.

To cap yearly use at 40 hours, switch your QuickBooks Online PTO setup to a flat yearly lump sum instead of an ongoing accrual, or manually manage employee balances.

Here's how:

To access employee time-off policies, follow these steps:

1. Go to All Apps, then select Team, followed by Employees.

2. Choose the employee you want to manage and click on Time Off.

3. In the Time Off section, select either Start or Edit.

4. From the dropdown menu, select Add New [Time Off Pay] Policy to create a policy for:

   - Vacation Pay

   - Paid Time Off

   - Sick Pay

   - Unpaid Time Off

5. Fill out the required fields on the screen to create your policy, then click Save.

6. Click Save again to confirm.

The policy you created will be available to all of your employees. You can select this policy for other employees or create a new one for them. You can also adjust the limit to match whatever number of hours you prefer.

For more guidance on setting up and tracking time off, check this article: Set up and track time off in QuickBooks Payroll.

Please respond to this post if you have additional concerns.