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tamaro722
October 27, 2023
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Employee Termination Check Spread Out Over Two Pay Periods

  • October 27, 2023
  • 2 replies
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We have a terminated employee who has requested to receive their severance pay in two installments. I can find how to do a final termination check; however, how would I go about spreading this out over two pay periods? 

Best answer by Adrian_A

Hello Tamaro722,

 

You can create two unscheduled paychecks for your employee's severance pay. 

 

When doing so, take note of the employee's schedule, as this will impact the paycheck. If the employee is on a bi-weekly basis, you'll have to change the pay period date and pay date manually. If they're an hourly employee, you'll have to adjust the number of hours. For a salaried employee, you'll have to divide the number of hours into two. 

 

Just a heads up, you might want to check with your state if this step works for them since some states have different regulations.

 

After creating the final paycheck, you'll have to update the employee's status in your payroll service. Here's an article for the detailed steps:  Change an employee status.

 

I'm always around whenever you have payroll concerns.

2 replies

Adrian_A
Adrian_AAnswer
October 27, 2023

Hello Tamaro722,

 

You can create two unscheduled paychecks for your employee's severance pay. 

 

When doing so, take note of the employee's schedule, as this will impact the paycheck. If the employee is on a bi-weekly basis, you'll have to change the pay period date and pay date manually. If they're an hourly employee, you'll have to adjust the number of hours. For a salaried employee, you'll have to divide the number of hours into two. 

 

Just a heads up, you might want to check with your state if this step works for them since some states have different regulations.

 

After creating the final paycheck, you'll have to update the employee's status in your payroll service. Here's an article for the detailed steps:  Change an employee status.

 

I'm always around whenever you have payroll concerns.

T
tamaro722Author
October 27, 2023

Thanks very much for the assistance!

S
SirielJeaB
October 27, 2023

It's a pleasure to have you here again, @tamaro722.

 

I’m glad that my colleague Adrian_A was able to help with your concern. You are always welcome to post in the Community with any QuickBooks-related questions you may have. 

 

Don't hesitate to get back to us if you have other concerns with processing payroll in QuickBooks Desktop. We'll be happy to lend a helping hand. Have a nice day ahead! 

AlverMarkT
AlverMarkT
February 15, 2024

Thanks for joining the thread, @tdcloud. I'm here to help. 

 

If you want to create a check covering the next three months for your terminated employee, you can run an unscheduled paycheck. You can follow these steps: 

 

  1. Go to Payroll, then Employees. 
  2. From the Run payroll ▼ dropdown, select one of the following: Bonus only, Commission only, or Fringe benefits if you already selected one of these as the pay type.
  3. Based on your selection you may be asked additional questions. Enter any info about taxes or paycheck calculations (if applicable). Once complete, select Continue. 
  4. Select or review the pay period (if applicable) and pay date.
  5. Select the employees you want to pay.
  6. Select the column, or select Actions ⋮, then Edit paycheck to enter your pay details.
  7. Under each employee’s name, select paper or direct deposit paycheck.
  8. Select Preview payroll.
  9. Select or review the QuickBooks bank account to track your payroll.
  10. Select Preview payroll details or Submit payroll.
  11. Select Close.

 

After this, you can refer to this article to change your employee's status on payroll so that the employee will no longer appear on your active payroll list.

 

We'll be here in the Community if you have further questions about creating a final paycheck for your terminated employee. We're committed to offering ongoing support. Take care. 

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