Why can't i set up a vacation pay policy that is simply 4% of retained earning.

Hi rlandry, 

Thanks for messaging back. I think that we're talking about the same thing; it's just labelled differently in Desktop than in QuickBooks Online. I believe the set-up you're looking for is to Payout each pay period.

Here's how to set up this vacation policy:

1. Go to Payroll, and choose the Employee tab.
2. Select the employee you want to add the policy to, click on the Pencil Icon next to the Pay column header.
3. Scroll down to section #5, Let's create a new vacation policy for employee's name.
4. In the dropdown, select 4.0% Paid out each pay period.
5. Click Done.

This will pay your employees 4%of their gross earnings on each pay cheque. I've included a couple of articles that go into more detail about the vacation policies: 

• Vacation policies for QuickBooks Payroll (QP)
• Payroll set up: Vacation policies

If you have any more questions, let me know, and I'd be happy to go through it with you. Have a great day!