Hi Belinda,

Thanks for posting in the Community!

There is a Payment Set up option in every leave category you've set up in QuickBooks Online Payroll. In Payment Setup, you can choose a pay category for employee leave payments. For example the default setting for Annual Leave used to be Basic, but it's now reported under a separate category called Annual Leave Taken. You can change this if needed.

To check leave category payment set up:

1. Click on the Payroll tab.
2. Select the Payroll Settings.
3. Click on Leave categories.
4. Select the leave category name.
5. Check the Payment set up selected.
6. To assign or report leave earnings select Report leave earnings against a specific pay category. If not set it to Custom.

Once you have set up the leave categories, you will be able to apply them to the pay run.

You can check this link to learn more about: How to Add leave Categories in QuickBooks Online Payroll.

Post again in the Community if you have other questions.