Why is PTO and Vacation time used not deducting from the remaining balance?

Hello there, wolfe. I'm here to share information about your PTO concern in QuickBooks Online. 

In your case, you may have assigned an incorrect vacation policy for your employees. That said, you may want to verify it in your account. I'll show you how.
 

1. Go to the Workers menu on the left navigation bar.
2. Select Employees.
3. Choose the name of the employee.
4. Click the Edit icon on the Pay section.
5. Go to the How much do you pay an employee option, and click the Edit icon.
6. Check the box beside Sick Pay and Vacation Pay.
7. Select the policy and enter the employee's Current balance (hours).
8. Then select Done.
    

You can refer to this article for more details: Set up and track time off in payroll. 

However, if the issue persists, I'd like to know if your account integrates with QuickBooks Time. That way, we can check further on this issue. 
 

I've also added the following articles for more details on managing your payroll history and on how to track prior payroll in QuickBooks Online:
 

• Add pay history to QuickBooks Online Payroll
• Learn about reports to use to enter prior payroll
   

Please let me know in the comment section if you have additional information or concerns. I'll be happy to assist you. Have a good one!

Thank you for the reply. All of that seems correct. The used vacation and PTO time is still not deducting from the employees balance. We do not integrate with QuickBooks Time. 

Thanks for reaching out to the community again for this vacation and PTO deduction concern, @wolfe7501-yahoo-.

I've checked if there are reported issues about this but there isn't any at the moment. If you're still experiencing this odd behavior in payroll after reviewing all the settings, I do recommend reaching out to our Payroll Support to get this reviewed.

They can check on your account and identify what's causing the issue. To get in touch with our payroll representatives, follow these steps in your QBO account:

1. Click the (?) Help menu, then Contact us.
2. Add your payroll concern, then select Let's talk.
3. Choose a way to connect with us:
   • Start a chat with a support expert.
   • Get a callback from the next available expert.

You can also chat with us online if the wait time for calls is longer than usual. Check out the following links based on the product that you're using:

• QuickBooks Online Payroll Core
• QuickBooks Online Payroll Premium
• QuickBooks Online Payroll Elite
• QuickBooks Online Payroll

Please post here the result of the call as I want to ensure this is taken care of. I'll be around also if you have other concerns with the program.