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briggsee
briggsee
July 4, 2021
Solved

Terminate and pay employee part way through month

  • July 4, 2021
  • 1 reply
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How do I produce payroll and payslip for an employee who is leaving half-way through the month and only being paid for part of the month? I'm using QBO advanced payroll.

Best answer by Rose-A

Unfortunately, none of the reference tabs (i.e., "Pay Runs" or "Actions") are shown in my QBO account.  Is there another process description for the American version of QBO? 


It's good to see you here in the Community, LazerPrint.

 

The steps provided by my peer above are for the QuickBooks Online UK version with Advanced Payroll. For the American version of QuickBooks, you can follow the steps below to create a termination check:

 

  1. Click Payroll in the left panel and choose the Employees tab.
  2. Select the ▼ dropdown and then one of the following: Bonus only, Commission only, or Fringe benefits if you already selected one of these as the pay type.
  3. Select As net pay if you know the exact amount you need to pay the employee. Otherwise, select As gross pay.
  4. Enter any additional info about taxes or paycheck calculations.
  5. Choose the bank account you use in QuickBooks to track this type of payroll transaction. Also review the pay period and pay date.
  6. Select the employees you want to pay.
  7. Enter their hours, compensation, memos, or any other necessary paycheck info.
  8. Under Pay Method for each employee, select the link to choose a paper or direct deposit paycheck.
  9. Select Preview payroll and click Preview payroll details to review the details. Then select Save for later or Submit payroll.
  10. When you're ready, select Finish Payroll.

 

For more details, check out this article: Create final paychecks for terminated employees. This will provide you with steps on how to update the employee's status.

 

If I can be of assistance while working in QuickBooks, please let me know. I'll be more than willing to lend you a hand.

1 reply

A
AileneA
July 4, 2021

Hello, briggsee. 

  

Welcome to the Community. In QuickBooks, you can create the paycheck the same as you would normally do. If the employee is paid salary, you will have to do a manual calculation and adjust their pay accordingly. Then enter the details on the employee by editing their employee's information and entering their termination date.  

 

Be sure to Make them in active and you won’t be charged for them anymore .  

 

You can select just pay that one employee, Even though all the names of the populate when you select the pay cycle. 

 

Also, if they were marked terminated already, you need to un-terminate them, remove the termination date, and order to create that final paycheck. 

 

For more information about QuickBooks Online Advanced, see the following links for reference: 

 

 

Update the thread with any additional information or questions. I'll be right here if you need anything else. Have a good one and stay safe!

briggsee
briggseeAuthor
July 4, 2021

Hi,

Yeah sorry, should have said this is a "HOW TO" question rather than a "IS IT THEORETICALLY POSSIBLE" question. I'm kind of new to Quickbooks payroll. I have only monthly salaried staff and one of them is leaving on 6th July. I can see that I can "Leave" them within the payrun but I don't want them to receive an entire months Personal allowances for a bit of a month as they are moving to another job. Is it possible to run a payroll just for them for 6 days pay and if so, HOW? In SAGE Payroll it was easy

R
Rasa-LilaM
July 4, 2021

Hello there, briggsee.


Thanks for adding more details about your payroll concern. I’ll help make sure you can create termination pay for your employee.


Yes, you can create a paycheque for your salaried worker. As mentioned by my colleague, you’ll have to manually calculate the amount.

 

Then, add it to the paycheque. You can consider consulting a tax adviser to help calculate the correct amount. When you’re ready, let’s go ahead and run payroll.

 

  1. In QBO, go to Payroll and hit the Pay Runs tab.
  2. Then, choose the pay run you wish to terminate and click on the employee’s name to expand the details window.
  3. Choose Actions and then select Terminate employee.
  4. Pick the termination date and note of the following:
          *Any annual leave owed to the employee will be calculated and the ‘Pay Out’ option is automatically ticked.
          *Any holiday entitlement will be paid within this pay run, if the employee has used all their entitlement they will not be entitled to any annual leave payout.
  5. To create the termination payment, press Actions, and select Add earnings.
  6. This will display the OTHER EARNINGS field.
  7. Expand the dropdown menu and select Termination Payment from the options. A box will show up with the following information:
     a. This is to remind you that tax and National Insurance (NI) Class 1A will be applied to any termination payment over £30,000. Tax and NI will NOT be payable on termination payments UNDER £30,000.
    b. Employee will pay tax on any termination payment amount over £30,000. For example, if an employee is paid a £45,000 termination payment, the employee will pay tax on £15,000 and no NI contribution; the employer will pay Class 1A NI on £15,000.
  8. Enter 1 in the Units field and add the termination amount in the Rate box.
  9. Hit Save.

This article provides information about terminating and reactivating an employee. You’ll also find the steps on how to split a termination payment: Terminating an employee in QuickBooks Online Advanced Payroll.


Additionally, this guide contains topics to help get started using QBO Payroll Advanced. It shows the list of tasks you can do including the link for the article: Set up guide for QuickBooks Online Advanced Payroll.


Feel free to click the Reply button and post a comment if you need help with QuickBooks. I’ll be around to assist further. Have a good one.

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