Thanks for joining this thread, @LynneOO. 

I'm here to share some insights about your client's vacation time. 

QuickBooks is designed to post the vacation accrual item to the payroll expense account. If you want to change this account to a liability account, you can edit the payroll item. Here's how: 

1. Go to the Lists menu at the top. 
2. Find the vacation payroll item and double-click it. 
3. Click Next. 
4. Enter the appropriate account for your client's business. 
5. Click Finish. 

If you haven't created this payroll item, you can perform the steps provided by my peer above, @MichelleT. 

Since the program will automatically calculate the item when creating paychecks, there's no need to track it on a regular basis and pull the funds aside. 

In case you need to create reports showing your employee's used, available, accrued, and maximum vacation and sick time, here's a great article you can refer to: Sick and Vacation Time Reports. 

This will get you going, @LynneOO. I'm here anytime you have other payroll concerns. Have a good one.