I think you can just record it an adjustment to vacation pay for that employee.  Since deductions and remittances are calculated when an employee is paid, rather than when the vacation pay is accrued, adjusting the vacation pay should have no effect on remittances or deductions. 

There is a knowledgebase article 12726 here.

I think you can just record it an adjustment to vacation pay for that employee.  Since deductions and remittances are calculated when an employee is paid, rather than when the vacation pay is accrued, adjusting the vacation pay should have no effect on remittances or deductions. 

There is a knowledgebase article 12726 here.

Thanks, the only thing though that I am still wondering is that now her last paycheque is "negative" as she now owes the employer. Since this is her last "paycheque" beacuse she has quit, I am just unsure if I should post this negative amount.

You will have to post it as an income - post the vac pay so that it becomes a nil amount and then put the difference into wages. That will nil out the chq amount. Chalk it up to lesson learned and next time an employer wants to take more time off then just pay out vacation accrued and no more:).
Some will put the credit difference into income tax in order to have the ex-employee pay that back on personal tax return but that is not legal by CRA standards.

yes, I did that.. put the vacation as a nil amount in the payroll module, but that makes her last pay -237.25.. do i just post this negative amount??

You should be able to put 237.25 into Wages in the income tab. If they are hourly paid you could put into another income that is not related to hourly income such as bonus or salary.

Thank You! I put it under bonus, and made it a nil amount that way.. thanks for the help.. now to get her to pay it back!

Smitco, would someone create a 'Vacation Overpaid" income item for this ?
if so, linked to what account ? wages expenses ?
if so, what T4 box is this income linked to ? earnings ?

You can call it whatever you want but the end result is that it is an income which is declared as earnings on the T4s.
I have clients who cannot afford to offer employees a benefit plan but do pay out a certain percentage of wages in compensation for it. Even tho it is listed as Benefit Supplement on the employees' paychqs it is still earnings, taxed as such, and is lumped in with bonuses, wages, taxable benefits, etc as one amount for total earnings on the T4s.