How do I pay out ytd vacation pay to employee?

Hi there,

I'll be happy to  guide you on how you can pay accrued vacation pay in QuickBooks Online. To do this, you’ll have to enter the employees accrued hours when you create their paycheques. And then, the total vacation hours will be deducted.

In case you haven't set up vacation pay, here’s how:

    1. Click on the Gear icon.
    2. Click on Payroll Settings.
    3. Click the Vacation/Sick/PTO link below the Payroll and Services section.
    4. In the Vacation and Sick Leave Policies box, click Create.
    5. In the Category drop-down, select Vacation, enter a Description, select the Accrual Frequency, and then enter the Hours earned per year and the Maximum available hours.
    6. Click OK.

Then run the payroll, paying the accrued vacation:

1.     Click on Employees tab.
2.     Click Run Payroll.
3.     Enter all other pay types and the vacation hours.
4.     Select Preview payroll and make sure to review vacation hours.
5.     Click on Submit payroll.

Here's a great article that explains more about calculating vacation pay out for an employees. Check it out here. Let me know if you have questions.