With QuickBooks Payroll, you can easily enter and track employee sick and vacation time, so that the hours used during each pay period and the balance will show on each employee's paycheck. Follow these instructions:

1. From the Employees Navigator, click the Pay Employees icon.
2. In the Select Employees to Pay window, put a check mark next to the employees you want to enter sick or vacation hours for.
3. Then click the button next to "Enter hours and preview check before creating."
4. Click the Create button to display the Preview Paycheck window
5. Enter the number of hours worked in the employee's salary or hourly wage payroll items. For example, if your employee usually works a 40-hour week, but was sick one day (8 hours), you would enter 32.
6. Click the first blank line in the Item Name column of the Earnings section.
7. Choose the appropriate payroll item from the list and enter the number of sick or vacation hours in the Hours column. Using the example from Step 4, you would enter 8 sick hours for this employee. QuickBooks calculates the rate for sick or vacation hours using the employee's salary or the first hourly rate for hourly employees.