Below is the definition of Accrued Accounts and helpful tax regulation for the

treatment of accrued compensation. Use it for calculation of accrued bonus

and accrued vacation.

Accrued accounts

Expenses recorded for certain accrued accounts, such as accrued bonuses,

accrued vacation and accrued profit sharing, cannot be deducted for tax
purposes unless these are paid out within two-and-a-half months of your
company’s year-end (March 15th for calendar year-ends).

Regulation §1.404(b)-1T

A plan, or method or arrangement, shall be presumed to be one deferring

the receipt of compensation for more than a brief period of time after the
end of an employer's taxable year to the extent that compensation is
received after the 15th day of the 3rd calendar month after the end of
the employer's taxable year in which the related services are rendered (“the
2 1/2 month period”).

Source: https://www.law.cornell.edu/cfr/text/26/1.404(b)-1T