By Natalie - July 1, 2025
Categories: Accounting, Bookkeeping, Employees

Running an auto repair shop means keeping things running smoothly under the hood and in your business operations. 

But what happens when your technicians, service writers, or admin staff start taking vacation time? If you’re not prepared, managing paid time off (PTO) can throw a wrench in your payroll process.

Here’s how to get ahead of vacation season and keep your auto shop payroll stress-free.

 

Understand Your PTO Policy

Before anything else, make sure your PTO policy is clear, documented, and communicated to your team. Whether you offer accrued time off or a lump sum annually, everyone should understand:

  • How PTO is earned

  • How it’s tracked

  • How far in advance requests should be submitted

  • Whether unused PTO rolls over

A solid PTO policy protects both your team and your bottom line and helps avoid confusion when vacation requests roll in.

 

Plan Ahead for Coverage

When your top tech takes a week off, will you need to shift schedules, reduce appointments, or bring in part-time help? 

Planning ahead ensures you won’t lose productivity while keeping workloads reasonable for the remaining staff.

Use your scheduling system to map out time-off requests and plan shop coverage accordingly. It’s also smart to cross-train employees when possible, so one absence doesn’t stall your whole workflow.

Don’t have a system in place? Digital project management tools, such as ClickUp, are excellent resources for keeping your schedules moving at a healthy pace.

 

Automate Time Tracking

Manual timesheets are a recipe for errors, especially when it comes to calculating vacation pay. Use a time tracking and payroll system that accurately records PTO hours and ensures compliance with labor laws.

Bonus: Automating PTO tracking also helps you forecast staffing needs, calculate accruals correctly, and prepare your books for tax season.

 

Budget for Vacation Payouts

PTO is a liability on your books, meaning it represents money you owe your employees, whether they take the time off or not. Make sure you’re accounting for this in your budget.

At Three Rivers Bookkeeping, we help auto shop owners track PTO liabilities monthly so they’re not caught off guard by larger vacation payouts or year-end accruals.

 

Communicate With Your Payroll Provider

If you outsource payroll (or work with a bookkeeper like us), notify your provider in advance of any scheduled vacations, so they can prepare for different pay rates or special time-off calculations. This avoids last-minute corrections and delays.

 

Keep Your Records Clean

Accurate PTO tracking helps you pay your team, but it’s also essential for tax reporting and compliance.

Maintain detailed records of:

  • Accrued and used PTO for each employee
  • Dates of time off
  • Any PTO payouts upon termination

This protects your shop in the case of an audit or employee dispute.

 

Need Help Managing Payroll and PTO?

At Three Rivers Bookkeeping, we specialize in helping auto repair shops simplify payroll, manage PTO, and get their books in gear. Whether you’re a one-bay operation or a growing garage, we’re here to make your numbers work for you.

Ready to streamline your payroll? Contact us today and let’s talk shop.