If you are separating an employee and you want to pay their accrued PTO you can do so by paying the employee using "Create Payment" option.
Follow these instructions to pay an employee accrued PTO when separating them from your company:
Go ahead and separate the employee.
2. DETERMINE UNUSED PTO HOURS
You can do this from the employee profile under PTO Policies
4. DETERMINE A PAYMENT AMOUNT
You can do this by using the number of hours you want to pay and the employee's wage.
When creating this payment select the "PTO" option and choose the "Group with outstanding payroll payment" option, because then it'll just add the PTO payout amount into the employee's final payment.
If you choose the regular "Separate payment" option it's also fine, you will just need to approve both payments (final payroll and PTO) separately.