can I pay out vacation accrual at end of year outside of normal pay and how do I do it?

Hello, Adam.
 

Yes, you can by setting up a pay category called "Vacation Payout" in the Payroll system to track these pay separately.
 

There are two ways to pay accrued vacation. First, Vacation Time Off (Vacation Hours Used), used when the employee has taken vacation hours and you're paying them for those hours. Here’s what you can do:
 

1. Enter 8 hours in the Run Payroll Vacation Pay section.
2. The system will automatically multiply those hours by the regular pay rate per hour.
3. This process will reduce:
   • Vacation balance (in terms of dollar amounts), and
   • Vacation time (remaining hours)
     
     

Second, Accrued Vacation Payout (Vacation Hours Not Used). Use it to compensate unused vacation hours (e.g., at year-end or upon termination).

Here are the steps:

       1. Go to the employee’s profile.

       2.  In the Additional Pay types section click Add (if you haven't created an item yet).

       3. Create a New type (for Accrued Vacation Payout), select Type as Other Earning and hit Save.
       4. If you have created it already, verify that "Accrued Vacation Payout" is checked and select Done to save changes.

       5. In Run Payroll, choose Bonus or Commission only and enter the accrued vacation payout dollar amount. This process will reduce the vacation balance (dollar amounts), but

not reduce vacation time (remaining hours).

Refer other details in this article: Vacation accrual 

Please leave us a response if you have other questions or concerns.