It means that whatever vacation is not used or paid in prior calendar year is given up and however much vacation is allowed per year starts over with no carryover.

Unchecked accumulates unused for use later.

Review what you have in your employee manual and any contracts or agreements with your employees

Resolution for 'agreements issue: 'In Payroll, under vaction time what does “Reset Hours each new year” mean when the box is checked?' available: Yes.

The agreements issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the agreements issue yourself by looking for a resolution described in the article. If it is a complex agreements issue or you are unable to solve the issue, you may contact us by clicking here or by using other agreements support options.

For more information about resolving issues related to agreements in Quickbooks/QBO or to get support for the issue 'In Payroll, under vaction time what does “Reset Hours each new year” mean when the box is checked?', click the link below: