Under this employee's income tab, is the Calculate Vacation on Vacation Paid box checked?  If so, that could be the problem.  It will keep calculating Vacation Pay on Vacation Paid so you will have to uncheck that box.  You may have to adjust the last paycheck so it does not show as Vacation Payable for this employee.  You have to get rid of Vacation Payable to any employee no longer with the company or there will be an incorrect liability on their financials AND you will not be able to delete that employee years down the road.

If the salaried employees were not paid vac pay on every paychq and the final amount of vacation pay on their final cheque then yes that vacation pay amount will show in that box. It is correct as that box is requesting what vac pay was paid on their FINAL chq.

You may want to verify that the salaried employee should have had vac pay accumulated - usually salaried is not paid any vac pay since they always get a salaried paychq even when on their vacation time off.

When you do employees who get vac pay every paychq then you would have selected 'vac pay paid every paychq' hence why the vac pay on final paychq would NOT show in that same box.

Thanks for the help. This company was set up (before my time) so that salaried employee vacation is accrued as earned and paid out when taken (their salaried amount for pay periods where vacation is taken is reduced by the amount of vacation pay applied). The salaried employees are full time year round whereas the other employees are seasonal so are paid out vacation pay on every cheque.

In the jurisdiction where I live it is mandated that vacation is calculated on vacation paid so I am unable to change that checkbox. Thanks

LockeT - Moonball is correct in that you do need to untick that box when doing their FINAL paychq for the reason he indicated.

Below is how you can pay vac pay on vac pay but not have the vac pay on vac pay show as still owing for that employee AFTER you have paid the final paychq.

First enter the payroll with the VacPay on VacPay box ticked off. Enter the amount of vac pay as shown in the Vac Accrued Year To Date - once you enter that amount you will notice the balance in the Vac Accrued Year To Date now changes again and there is still a small amount in there. Make a note to mark down the Vac Paid This Period amount and the new Vac Accrued Year To Date amount.

Now close out the payroll module without posting anything, go back into employee profile box and untick the VacPay on Vac Pay box.

Open up the Payroll module and re-enter the payroll cheque, this time enter  in the Vac Paid This Period the total of the 2 figures you noted, this will now produced a credit balance in the Vac Accrued Year To Date so now you need to change the Vac Accrued This Period amount to include that small amount and that will change the VAc Accrued Year To Date to show as nil balance.

Thank you very much smithco and Moonball. I appreciate the feedback and instructions.