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How to accrue vacation time, sick pay, or paid time off in EasyACCT

SOLVEDby IntuitEasyACCTUpdated August 05, 2021

This article will help you set up accrual for vacation time, sick pay, and paid time off (PTO) in EasyACCT.

How to set up accrual for vacation time, sick pay, and PTO:

  1. Go to Batch Payroll, Update Company Files, Company Information and select the Vac/Sick/Leave tab.
  2. Select a time off code to set up from the dropdown menu.
  3. Select Setting Up and Accruing Vacation/Sick/Leave, then complete the fields under the Vac/Sick/Leave tab:
  • Time Off Code: select the code you wish to set up. You may create up to 10 time-off codes per company, and you may assign up to 4 time-off codes per employee.
  • Description: enter a description identifying the time-off code (such as "Vacation" or "Sick Leave").
  • Accrual Period: choose the accrual frequency: every paycheck, hourly, or annually. 
  • Accrual Date: for annual accruals, enter a date where you grant employees all their accrued hours. Upon reaching your specified date, the accrual date will automatically increment by one year.
  • GP Item to Accrue On: For hourly accruals, enter the gross pay items you wish to assign to the time-off code (The time-off code accrues time based on these gross pay items). If you leave the field blank, the system will automatically assign all gross pay codes to the time-off code.
  • Accrual Limit: enter the maximum number of hours the employee can accrue for the time-off code.
  • Accrual Rate: enter the number of hours the employee should accrue for the given period. For example, if you enter 4, and the accrual period is Every Paycheck, then 4 hours accrue every paycheck for the selected time-off code.
  • Carryover Annual Balance: select this checkbox if you wish to rollover the positive time-off accrual balance.
  • Max Carryover: enter the maximum number of hours that can be carried over into the next year.
  • Carryover Negative Balance: select this checkbox if you wish to rollover the negative time-off accrual balance.
  • Print Balance on Check Stub: select this checkbox if you want the time off accrual balance to print on the paycheck stub.
  • Gross Pay Item Used for Paid Time Off: enter the gross pay item that's used to pay the employee for their time off. When processing a payroll, the system reduces the current balance for the time-off code by the amount paid for the gross pay item. Use a different gross pay item for each time-off code.
  • Account Debit: enter the general ledger expense account to debit for the paid time-off accrual. The system updates this account when you print the Payroll Journal and post the payroll checks. 
  • Account Credit: enter the general ledger liability account to credit for the paid time-off accrual.  This account is updated when you print the Payroll Journal and post the payroll checks. 
  1. Go to Batch PayrollUpdate Company Files and select Employee Information.
  2. Select an employee and switch to the Vac/Sick/Leave tab.
  3. For each employee, select up to 4 paid time-off codes. 
  4. Note that information for each code pulls data from the setup in company information, but changes can be made at an employee level.
    • See the Vacation/Sick/Leave Field Descriptions above for more information.
  5. The PTO accrues as payroll is processed in the Batch Payroll module.

How to use vacation and sick pay:

  1. Go to Batch Payroll, Process Payroll, Payroll Check Computation.
  2. Enter the Check Date to be Processed, and the Pay Period Begin and End Dates.
  3. Enter the Period for Contributions and Deductions (if applicable).
  4. Select Continue.

For Hourly employees using paid time off: 

  1. Enter a new line for the employee and use the gross pay item associated with the paid time off code for the employee.
  2. Enter the number of hours used for vacation/sick time.
  3. The Rate and Amount will be entered automatically.
  4. Enter the gross pay item for regular hours and the number of hours that reflect the non-vacation/sick time used for the pay period. If the entire pay period was taken as vacation/sick time, you don't need this row. 

For salaried employees using paid time off:

  1. Enter a new line for the employee and use the gross pay item associated with the paid time off code for the employee.
  2. Enter the number of  hours used for vacation/sick time.
  3. The Rate and Amount will be entered automatically.
  4. Enter the gross pay item for Salaried Hours.
  5. Adjust the salary amount to reflect the salary, minus the amount of PTO calculated in step 6c.

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