Your employee has most likely exceeded the accrual ceiling set up for him. You can find his accrual ceiling by looking in Configure Employees. 21st Century Accounting rolls over the accrual ceiling from year to year. When you process an accrual as you process Payroll, if the unused accrual plus the current pay period accrual is greater than the ceiling, the current pay period accrual is limited by the ceiling.
At the beginning of the year, the 'Hours Accrued' and 'Hours Paid' are netted out and shown as the initial ytd Hours Accrued for the current year. The fact that you have not closed 2006 is not a factor. The employee paycheck will show the calculated balance of Hours Accrued less Hours Paid. The Earnings Report shows the ytd accrued and paid hours information. You may need to make an adjustment to the accrual. You can adjust the accrual ceiling in Configure Employees. You can adjust the hours accrued the next time you issue a paycheck to the employee.