Journal Entry Misclassification in QBO for Commission-Only Employees

I’ve identified an issue with how journal entries are being recorded in QBO for commission-only employees who receive vacation payouts on every paycheque.
While the paycheques and payments themselves are accurate, QBO is incorrectly recording the vacation payout as a liability instead of an expense. This misclassification creates a discrepancy: when T4s are prepared next year, the total wages paid will not align with the wages expense reported on the P&L.
Unfortunately, QBO support was unable to escalate the issue or open a ticket, stating that this is how the system was designed, even though the representative created a payroll on her end and confirmed the same issue. Despite this, it presents a significant accounting concern that could affect year-end reporting and compliance.
I noticed this error while reconciling our vacation liability account due to a change in our vacation policy. I’m confident this will cause issues for many companies once T4s are filed and they realize the wages reported on the T4s do not match the wages expense on the P&L.
It’s also important to note that this issue only began recently, following a QBO change or update in March 2025. As a result, it will likely go unnoticed until the next tax return period.
I’ve been working with QBO since 2021 and have consistently managed commission-only employees, reconciling vacation liabilities annually, so I’m certain this is a new and impactful issue. I hope it can be addressed promptly, as it will become a widespread problem starting next year.