Vacation Pay is not accruing/working properly when paying out an employee. I enter the vacation hours to pay, BUT it calculates more hours - never bringing them to zero.

Hi there. It's vital that you pay your employees the correct amount for the hours they've worked or are owed for vacation. QuickBooks Online Payroll is a great tool able to help you keep track of vacation owed to your employee so you can pay it out on a later date. I can provide some information about vacation accrual and payout.

In order to pay the remaining balance of vacation to an employee, you can follow the steps provided in the Vacation accrual FAQ. In this article, navigate to the How do I pay out accrued vacation in a payroll run? section, then follow the steps below the Accrued vacation payout (vacation hours not used) subtitle. This will get you to add the Accrued vac payout pay type to your employee and pay them using this payroll item. 

Once you've paid them using this, you'll see that their monetary vacation balance will be zero, but there will still be hours available. You can adjust the balance to make it zero as well by going to the Payroll tab, then Employees. Click on the name of the employee in question, then Edit employee. Scroll down to the section titled Let's create a new vacation policy for [Name of your employee], then click make adjustments so that you can adjust the balance of hours.

If you have any other questions, feel free to reach out here.