How do I switch an employee from accrued vacation hours to 4% payout each cheque when they still have vacation hours in the bank to use up.

Hi there, 

QuickBooks Online makes it easy to manage the vacation policy for your staff and I'll be happy to show you how. 

To edit the policy, follow the steps below:

1. Click on the Gear icon.
2. Click on Payroll Settings.
3. Click the Time off Policies link below the Payroll and Services section.
4. In the Time off  Policies box, click Create/Edit.
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.

Give this a try and if you have questions, I recommend contacting our support team using this link.