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January 16, 2023
Question

How to add severance pay to pay type

  • January 16, 2023
  • 1 reply
  • 0 views
How to pay severance pay

1 reply

January 16, 2023

Hey there wanghueiying,

 

Welcome to the QuickBooks Community! Thanks for reaching out to us here. Making sure you're able to add additional pay types correctly in QuickBooks is important. I would be happy to provide some information. 

 

In order to add severance pay, you will need to create a pay type. Here is how:

 

1- Head to the Payroll tab

2- Select Employees

3- Click on the employee you wish to add the Pay type for

4- Scroll down until you see Pay type, click Edit

5- Under Common Pay types, click on +Another Taxable Benefits in Cash type

6- Enter the name of the Pay type ( in your case it would be Severance)

7- Click save

 

That's all there is to it! You have now successfully created a Pay type! If you have any other questions, feel free to reach out to us here.

February 7, 2024

Severance should not be insurable or pensionable and should go in box 67 only.  How do you get this part set up?

February 7, 2024

Hello NancyChappel. Thanks for chiming in on this thread. I'll be happy to assist and provide more info. It's important to note that QuickBooks adheres to the rates set by the Canada Revenue Agency. However, if you'd like to edit your T4, you'll have to contact our payroll support team for further assistance. Feel free to ask other questions. I'm here to steer you in the right direction.