Hello lilir,
I appreciate that you've included the error message you're running into when processing payroll using QuickBooks Online Payroll. Knowing this helps me see what could be going on in your account, and I can get you started with addressing and resolving this issue.
QuickBooks Online Payroll keeps things simple and relies heavily on how you set up your employees to know how to process the information when you complete a pay run. The message you're seeing typically comes up when one or multiple employees has vacation policies or calculations that aren't set up correctly. Sick pay setup and calculations can also cause this message to occur. Given that, the first thing I recommend doing is reviewing your employees' information in these areas.
There are a few different ways I recommend doing this. One of those ways is by pulling up the Vacation and Sick Leave report through the Reports tab. This report shows you the available vacation and sick pay available for your employees. The next place to check is the Employees section of the Payroll tab. Your list of employees includes the amount of vacation the employee has available.
If either of these areas is showing a large amount for either vacation accrued or sick pay available, it's time to take a closer look at the employee setup. Click the name of an employee and then Edit employee to see the employee profile in detail. There, use the sections How much do you pay [employee]? and Let's create a vacation policy for [employee] to review and adjust the sick and vacation policies and amounts as needed. Once those are corrected for all employees that need it, you should be able to go back and complete your pay run without issue.
Our support team would be happy to offer extra assistance with this is you're not sure where to make changes or how your setup might be causing that message. To connect with a member of our team, please use one of the following options.
Schedule a Callback or start a Chat: click (?)Help in the upper right in QuickBooks Online > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
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We're here to help resolve this error and answer your questions. I wish you the best with this!
