Hello there, dd559.

QuickBooks Desktop payroll provides flexibility to apply vacation and sick hours for employees. Please note that it is based on the policies and preferences of your organization. 

The decision to apply vacation and sick hours to employees is dependent on your company's specific policies and practices. If an employee is eligible, you can define the accrual rates and limits for these benefits based on your organization's policies. You can follow the steps shared by my peer above.

If an employee is not eligible for vacation or sick hours, you can leave the sick and vacation setup blank. In this case, I still recommend consulting your accountant to make sure we are able to handle this situation.

Please let me know if you have more concerns. I'll be around to help.