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Tracking Time Off

With the new mandatory sick leave law in Massachusetts, employers have included vacation and sick time accrual and usage on employees’ paystubs.  How do you set this up in QuickBooks?

First, look at your personnel policies and determine how the time off is accrued.  QuickBooks tracks only two types of time off: vacation and sick.  Holiday time isn’t tracked (since all employees receive that time off on certain dates.  Personal days can be tracked as vacation time.  Time can be awarded at the beginning of the year, or can be accrued with each paycheck.  In each employee’s set up, click on Payroll Info, then Sick/Vacation.

Second, set up payroll items for each expense line / payroll item that also has vacation and sick time.  For example, if you have a hourly payroll item for your Administrator, then set up two additional payroll items: Administrator V and Administrator S.

Third, when an employee uses time off, then divide their earnings between regular, vacation, and sick time by using the appropriate payroll item.

Further detail on setting this up is included in a forthcoming training video — QuickBooks 3:7.  In the meantime, please email us if you’d like assistance.