I need to make an employee redundant at the end of this month. Their redundancy pay will include statutory redundancy pay plus some goods (a van). How do I record this?

To proceed with making an employee redundant, you can mark their status as terminated, @easttv. Let's work together to achieve your goal of managing this process effectively while ensuring redundancy pay, including statutory requirements, is recorded accurately.

Let's begin by terminating the employee's position, which is a necessary step to legally document the conclusion of their employment with your company. This process ensures everything is handled properly and in compliance with legal standards.

Here's how:

1. In Payroll, click Employees tab.
2. Go to the Employees details page by clicking their name and hit Terminate Employee.
3. Put the Termination date to make the employee inactive and making them ineligible for future pay runs and termination pay, then tick Terminate.
4. You can also delete the employee by selecting Delete and Delete again to confirm.

Afterward, I recommend setting up a dedicated pay category for the redundancy payment, as well as a separate one for statutory redundancy pay. This approach will help keep everything organized and clear. I'll walk you through how to set this up:

1. Go to the Gear icon and hit Payroll settings.
2. Select Pay Categories under Pay Run Settings.
3. Click Add and enter the Pay category name then tick Save.

Once complete, you can include these categories in the Primary Pay Category when processing your employee's final paycheck.

On the other hand, know that the first £30,000 of statutory redundancy pay is tax-free. The specific deductions will depend on the components of the employee's termination package.

For a seamless process, I recommend consulting your accountant. They can provide guidance on recording these payments correctly and advise on offsetting them against profits for tax purposes.

Additionally, for more detailed assistance, consider reviewing this resource to invaluable aid in managing the termination effectively: Terminating an employee in QuickBooks Online Advanced Payroll.

If you need any further assistance with making the employee redundant or managing their redundancy pay, we're right here to help. Please feel free to leave your questions below, and we'll quickly get back to you with all the necessary information and resources.