The problem of vertical alignment is that you used the align left attribute on your image (you shouldn't use it since alignment is deprecated).
, , , , :
#leftPanel {
width: 25%;
}
#leftPanel ul {
display: table;
width: 100%;
}
#leftPanel li {
display: table-row;
list-style: none;
margin-bottom: 10px;
width: 100%;
}
#leftPanel li img {
margin-right: 10px;
display:block;
}
#leftPanel li>a {
display: table-cell;
background: #ccc;
height: 100%;
vertical-align: middle;
}
#leftPanel li>a:last-child {
width: 100%;
}
<div id="leftPanel">
<ul>
<li>
<a href="#" class="activeBtn"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Location & Sub Location"></a><a href="#" class="activeBtn">Location: Sub Location</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Issued To" align="left"></a><a href="#" class="button5">Issued To</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Non Conformance Standard Items"></a><a href="#" class="button5">Non Conformance Standard items</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Attendee & Company"></a><a href="#" class="button5">Attendee : Company</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Construction Calendar"></a><a href="#" class="button5">Construction Calendar</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Associate Users & Permission"></a><a href="#" class="button5">Associate Users : Permission</a>
</li>
<li>
<a href="#" class="button5"><img src="https://i.stack.imgur.com/yEshb.gif" width="49" height="45" alt="Cost Code Form"></a><a href="#" class="button5">Cost Code</a>
</li>
</ul>
</div>
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