How To Edit Lunch Break Settings In QuickBooks Time When It Shows As Paid (2026)
When QuickBooks Time or QuickBooks Payroll suddenly begins counting unpaid lunch breaks as paid time, it can throw off payroll totals, overtime calculations, job costing, and compliance requirements. Many teams face this issue after a settings change, new timesheet import, or system update.
QuickBooks Time counting unpaid lunch as paid? Here’s how to fix lunch deduction settings fast. Expert help: +1-866-409-5111.
If your employees take unpaid lunches, but QuickBooks is logging those breaks as paid hours, don't worry — this is a very fixable issue. Below is a clear, step-by-step guide to correct your lunch settings and ensure your payroll stays accurate. And if you need live help, you can always call +1-866-409-5111.
Why QuickBooks Time May Be Counting Lunch Incorrectly
Several things can cause unpaid lunch time to appear as paid in QuickBooks Time:
Incorrect break rules set up in QuickBooks Time
Manual timesheet entries overriding automatic deductions
Automatic break deductions not enabled
New workers added without assigned break policies
Sync issues between QuickBooks Time & QuickBooks Payroll
A recent QuickBooks update that reset certain automation settings
If one of these occurred, your unpaid lunch breaks may suddenly show up under total hours worked.
How to Fix QuickBooks Time Counting Lunch as Paid (Step-by-Step)
1. Check Break Rules in QuickBooks Time
Break rules determine whether employees are paid or unpaid during breaks.
Go to Feature Add-Ons
Select Time Options
Choose Breaks
Look for your default lunch break rule
Confirm that the break is marked as Unpaid
✔ If it says Paid, switch it to Unpaid.
2. Verify Automatic Break Deductions
If employees forget to clock out for lunch, QuickBooks Time can automatically deduct break time — but only if the automation is enabled.
Go to Company Settings
Click Schedule & Break Rules
Check Automatic Breaks
Ensure Auto-Deduct Unpaid Breaks is ON
Select the correct duration (30 minutes, 45 minutes, etc.)
If this is turned OFF, QuickBooks will assume lunch is paid.
3. Check Employee-Specific Settings
Sometimes the issue occurs only for certain employees.
Go to Team Members
Select the employee
Check Assigned Policies
Make sure the correct Break Rule is assigned
If employees were added after you created your break rules, they may not have been automatically added to the unpaid lunch rule.
4. Review Timesheets for Overrides
Employees or supervisors may manually override the break.
In Timesheets:
Open the employee’s day
Look for breaks logged as paid
Correct or remove paid breaks
Reapply unpaid break rule
This is common if people manually enter hours instead of clocking in/out.
5. Sync QuickBooks Time With QuickBooks Payroll
Sometimes the break rule is correct in QuickBooks Time but payroll still shows the wrong totals.
To fix:
Go to QuickBooks Time Integration Dashboard
Select Sync
Confirm that Hours Imported match the adjusted timesheets
If sync errors appear repeatedly, it may be a configuration issue — professional support can help at +1-866-409-5111.
Pro Tips to Avoid Lunch Errors in the Future
Use automatic unpaid lunch deductions
Require employees to clock out/in for lunch
Review break rules after every QuickBooks update
Perform a weekly payroll audit for break discrepancies
Assign break rules to all new hire profiles
These steps prevent major payroll miscalculations.
FAQs
1. Why is QuickBooks charging employees for unpaid lunch?
Because the break rule is likely set to Paid or the automatic deduction is disabled.
2. Can I apply unpaid lunch rules to all employees at once?
Yes. Use Company-Wide Break Policies and assign them globally.
3. Why did lunch rules stop working after an update?
Updates sometimes reset certain settings or disconnect sync rules.
4. Can QuickBooks Time automatically deduct 30 minutes of lunch?
Yes — turn on Auto-Deduct Unpaid Breaks.
5. What if lunch deductions still don’t work?
You may need account-level troubleshooting. Call +1-866-409-5111 for expert assistance.