C White is correct. Entering hours under vacation paid has to do with EI. For a full review, read Insurable hours - Canada.ca

So if my employee works 35 hours and I pay out vacation pay on each pay I do enter 35 hours under vacation hours pd? When I print the paystub it doubles the hours for insurable hours when I input hours in vacation hours. So EI insurable hours shows 70 hours on paystub instead of 35. 

If you set their employee record to not retain vacation pay, it will be released on each pay without hours attached.

thanks but the retain vacation pay box is not checked... Must be something else I have wrong 

I'm not sure why you think there is something wrong.  CNix indicated to set the employee record to not Retain Vacation pay and that is how you have it set.

Did you read the link that Pier posted above, especially the section under Vacation Pay in the section called "Situations involving vacation pay and statutory holidays"?

Janine, 

It is under this tab you enter EI insurable hours. 

So say a new employee works 35h @ 20$/h, then the vacation earned will be 28$. If you pay him/her every week, then you will input 35x4% = 1,4 hr or if you prefer 28/$20$ = 1,4 hr in Vacation Paid Hours and 28$ in Vacation paid amount. Like this:

Accordingy, EI insurable hours shows 36,4 hours on paystub instead of 35 which is correct

Take note the calculations in Vacation earned are made according to the employee record described previously.

Hope this answer your question.

En complément,

If you do not release the vacation pay each week, the Vacation Owed will  go up as long as you do not release it.  So, when you decide to have the Vacation Paid, you will enter the amount owed (in part or in whole) and adjust Vacation paid Hours according to the https://www.canada.ca/en/revenue-agency/services/tax/canada-pension-plan-cpp-employment-insurance-ei-rulings/cpp-ei-explained/canada-pension-plan-employment-insurance-explained-8.html rules.  In short, if it is a planned vacation week, Hours are insurable. On the contrary, if its a severence pay, Hours are not insurable.

oh thank you! We only hired an employee half way through the year. Looks like I have been putting vacation paid hours in incorrectly. The amount was always calculated correctly. So  It wouldn't have affected his pay, but I should be able to correct each paystub... thanks for your help!

You do not have to make corrections to your previous pay stubs. I would just make the correct calculations on Hours paid to the next stub. Everything will be on track afterward.

NO.  Employee got some vacation pay (automatically) WITHOUT TAKING ANY TIME OFF.  The rule of thumb to remember when assigning hours to vacation pay is that the hours to assign will be the hours of PAID TIME OFF.  That means that there has to be both VACATION PAY and TIME OFF before any EI hours will be assigned.

You will enter the 35 hours actually worked, and that will be the EI hours.

NO.  Employee got some vacation pay (automatically) WITHOUT TAKING ANY TIME OFF.  The rule of thumb to remember when assigning hours to vacation pay is that the hours to assign will be the hours of PAID TIME OFF.  That means that there has to be both VACATION PAY and TIME OFF before any EI hours will be assigned.

You will enter the 35 hours actually worked, and that will be the EI hours.

OK this is getting a little tricky ;-)

To me, all this confusion comes from the part of the internet link to Insurable-hours where we read: 

@C.White, you are correct. I have come to that conclusion after having the following tought.

Say you input 0 in Hrs to vacation, then when the employee takes a planned 2 weeks vacation after a year: Would you say:

a) he will have no vacation pay because they were paid each week AND no paid vacation hours. The number of hours accumulated over a year for EI purpose, will be say 50w x 35h = 1750h

or

b) he will have no vacation pay because they were paid each week BUT his last stub before that planned vacation period will indicate 35hrs Regular hours paid PLUS 70 hours vacation paid @ 0 $, giving a total of 105 hours on the employee's stub for that last week. The number of hours accumulated for a year for EI purpose, will be (49w x 35h) + 105h = 1820h

To sort this out, I have compared, on the other hand, with a second employee who does not have vacation pay paid each week. When this second employee takes a planned 2 weeks vacation after a year, he will have a vacation pay of 2 weeks (4%) AND 70 in vacation paid hours box. His number of hours accumulated for a year for EI purpose, will be say (50w x 35h) + 70h vacation paid = 1820h. So b) must be the correct answer

Additionnaly, in this second employee case, say the last pay is made before the planned vacation period because the employee quits or the employer puts an end to his job, the 4% severence pay would have lead to 0 Insurable hours.

In conclusion, the box ''Vacation paid Hours '' should be filled only on the last pay before vacations. Although I find it convenient to input EI Hours each week, it would prove me wrong IF the employment ceased before the planned vacation time.

Thanks, C.White, for raising the flag again.

And now, let's remember to enter the total hours accumulated on the last pay before the vacation period. It will be accounted for if a Record of employment is issued afterward.