Looking at an Income statement for a period, under Payroll Expenses is "Wages & Salaries" along with EI and CPP employer portions.   

Clicking on "Wages & Salaries" here opens its General Ledger and Vacation pay amounts are not included.

Do we have something misconfigured or is it by design/GAP to see vacation not treated as an expense? Instead it accumulates as "vacation owing" on Liabilities on the balance sheet, and when you pay out vacation, it simply lowers the liability. It seems to not give a true accounting of wage expense.  If an employee was paid 30000 regular + 1800 vac, didn't wage expenses cost 31800?