Is there a way to create a Vacation policy in Quickbooks that allows an accrual per hour worked up to a max of 8 hours per month, and a max of 120 per year carryover?

Let me provide a few information about the vacation policy, rfranceen.

QuickBooks Online (QBO) automatically calculate accruals each time when creating a paycheck based on the number of pay periods in the year. If you set up 120 hours earned per year, then the monthly hours earned per month is 10 hours (as shown in the table below).

You'll want to manually enter your employees’ current accrual balance to achieve the 8 hours accrual per month.

Here's how:

1. Click Workers on the left side menu.
2. Choose the Employees tab.
3. Select the employee name.
4.  In the How much do you pay [Employee Name]? section, tick the Pencil icon for Additional pay types: Overtime Pay, Vacation Pay, Reimbursement.
5. Manually adjust the hours in the Current balance field.
6. Hit Done.

To learn more about vacation/sick pay, I've got you an article for future reference: Set up sick or vacation pay in Online Payroll.

If in the future you'll need to delete an obsolete vacation policy, you can refer to this article: Delete an obsolete vacation or sick pay policy.

Please know that I'm only a post away if you need anything else with unpaid time off. I'm always here to help.