How do I release partial vacation pay by an amount, say $1000? Employee is salaried.

Welcome to the Community, CJR45.

I'll show you the steps on how to create a pay cheque using a specific amount for the salaried employee's vacation pay.

First, let set it up from the Payroll Info tab. Here's how:

1. Go to the Employees menu and select Employee Centre.
2. Double-click the employee's name.
3. From the Payroll Info tab, hit Vacation Pay.
4. Enter the Pay ($) available and Pay ($) used YTD.
5. Select appropriate settings.
6. The default Percentage value is 4%, enter a different Percentage if required.
7. Choose the appropriate Payroll Items under Earnings that accrue vacation.
8. Lastly, hit OK.

Once done, let's create a pay cheque using the amount of the vacation pay. Please follow the steps below:

1. Go to the Employees menu, then select Pay Employees.
2. Choose Scheduled Payroll or Unscheduled Payroll.
3. Select the employee and click Continue.
4. Enter the needed details.
5. Under the Company Summary area, there is an item for VacPay-Accrued with an amount that is accrued on this pay cheque. Adjust this amount.
   • Example: If vacation pay available is $400.00, and only $100.00 is being displayed, an adjustment of $300.00 is needed. The accrued amount for this pay cheque is $35.00. You would change the amount to $335.00.
6. Click Save & Close.
7. Hit Create Pay Cheques.

For the complete details and steps, please refer to this article: Set up vacation pay and accrual.

I'm happy to help some more if you have other questions in QuickBooks. Have a great day.

Hello @CJR45 ,

The instructions below tell you how to adjust amounts so that the employee's vacation accrual is correct, but did not really answer your question.

If you are paying Vacation for a salaried employee who is actually taking the vacation time, then you would use the Vacation Salary payroll item, and the regular salary will adjust itself.  For example, an 80 hour bi-weekly salary might be $3,200.00.  If the employee took one week or 40 hrs of vacation, you would enter the Salary item with 40 hours (which will automatically adjust to $1,600) and the Vacation Salary item with 40 hours (which will also automatically adjust to $1,600).

If the employee has requested vacation pay without actually taking the time, then you would use the VacPay-Accrual Paid Out.  When you use this item, your salary item will not be affected and it will let you add $1,000 to the gross earnings of the pay cheque; i.e. the employee would have $3,200 and 80 hours to Salary and $1,000 to VacPay-Accrual Paid Out for a total of $4,200 for that pay cheque.