I am closing my business. How do I process Termination/Severance Pay for employees in quickbooks

Hello stclairtoronto,

Welcome to Community!  I'm saddened to hear that your business will be closing.  Ensuring your staff is paid to date, enables you to provide them with the associated forms for their records.  I would be happy to provide more information, so you can create final pay cheques for your staff.

QuickBooks Online Payroll enables you to add or use Other Earnings when paying the employee's final paycheck.  This item is typically used for other taxable earnings that are separate from regular wages, such as retroactive pay, increases, and severance pay. 

Follow these steps to create the pay type:

1- Open to the Payroll tab and select Employees

2- Click on the employee you wish to add the pay type for

3- Scroll down until you see Pay types, click Edit

4- Under Common Pay types, checkmark the box beside + Another Taxable Benefits in Cash type

5. Hit Save or Done.

There are two ways to create a final paycheck in QuickBooks Online Payroll:

• Make the final paycheck their last regular paycheque
• Provide the employee a paycheck outside the normal pay schedule as a bonus paycheque or commission paycheque

Also for your reference, here are some helpful guides;

Change an employee's status and issue an ROE 

Prepare and submit T4 slips and T4 Summary

Export reports, lists, and other data from QuickBooks Online

Cancel your QuickBooks Online Subscription

What happens to my data after I cancel

If you have any other questions, please don't hesitate to reach back out.  We would be glad to help!