Welcome to ClockShark's Help article on how to set up automatic PTO tracking in QuickBooks Desktop and ClockShark. By following the steps below, you can enable PTO accruals, set up deductions, and learn how to process payroll when it includes PTO.
Note that before we start, it looks like there are many steps to this process, but they will go quickly. Depending on the state of your company file, you may even find that some of them you can skip. Let's begin. 😃
Steps to setup PTO in QuickBooks Desktop
On the Admin > QuickBooks screen, ensure that "Auto Import" is enabled. Also open the Web Connector and click "Update Selected" to make sure the Web Connector is empty. You're now ready to start.
- Open QuickBooks Desktop→ Lists→Chart of Accounts.
- Create a new account and name it PTO, Vacation, Sick, etc. (The screenshot below shows a sub account of payroll expense)
- In QuickBooks Desktop →Customers→Customer Center.
- Make sure you have an internal or admin customer for your own times. If you do not, create a new customer. (note: in this step, you are just creating a customer that you can associate the PTO with. This customer can have any name; for example, "PTO - Company Name" or "Admin Name - PTO". Whatever makes this customer easily distinguishable as your PTO job.)*
You can bypass this step, but the customer field will be blank on the weekly time sheet.
- In QuickBooks Desktop → Lists.
- Create a single service item named PTO to encompass all time off, or create Vacation and Sick Time service items.
- In QuickBooks Desktop →Lists→Payroll Item List (you likely have this setup).
- New Payroll item (EZ Setup)
- Set payroll item type to “Paid Time Off”, click Next.
- The set-up wizard will run. If you have created a single service item, PTO, check only the vacation box; if you created Vacation and Sick Time, check both boxes and click “Finish”. QuickBooks will automatically create new payroll items for hourly and salary sick and hourly and salary vacation.
- Still in the Payroll item list, right click any new item and select “edit payroll item” or “delete item” to remove unnecessary items. Rename Hourly Vacation to PTO and click next. Make sure it is associated with the new account from step 1.
- In QuickBooks Desktop→Employees→Employee Center. Double-click the employee to edit. *This often will be done by the QuickBooks administrator and is likely already setup.
- Employee Settings→Payroll info.
- Make sure in the “Earnings” table that the new PTO payroll item is added with the applicable pay rate.
- Click the “Sick/Vacation” button in upper right.
- Set the accrual parameters. It is common for 2 weeks of paid time off between sick and vacation, so set 40 hours for both, or 80 hours for just vacation if only using single PTO payroll item.
- Hours accrued every paycheck for all PTO on a bi-weekly basis are 3:05 (hours and minutes) or 3.08 (decimal) but can change depending the number of pay periods in the year. Click OK to save the settings, and OK again to exit employee settings.
- Repeat as needed for all employees.
- Run the QuickBooks Web Connector to create new items in ClockShark and return to the ClockShark Website.
- Go to ClockShark site, Admin→QuickBooks→Configure mappings.
- The new PTO service item(s) should be mapped. Edit the mapping and select the corresponding new payroll item to associate with the ClockShark task.
(Note: It is also a good idea to go into the ClockShark PTO task settings to ensure the “overtime exempt” box is checked.)
- Record a few PTO time entries, export to QuickBooks and run the QuickBooks Web Connector again.
- In QuickBooks Desktop→Employees→Use Weekly Timesheet.
- Verify the right service items/tasks sync’d, then save and close the time sheet.
- In QuickBooks Desktop→Employees→Pay Employees.
- Check the employee’s name whose time was exported and click “open paycheck detail”. The pay period end date may need to be set to the appropriate day.
- Verify the pay period is correct in the upper right corner and that the times were deducted from the PTO bank accordingly.
- QuickBooks calculates PTO used and removes it from the available bank, while simultaneously adding the PTO accrued. It WILL go negative if the employee has no PTO available.
And that's it! You've now enabled PTO tracking in QuickBooks desktop and ClockShark. If you have any other questions about how PTO in QBD works, please let us know @ firstname.lastname@example.org. 😃