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zmaleki51
March 19, 2021
Question

Payroll Setup for Pay in Lieu of notice (Taxable ,Pensionable, Insurable ,vacationable)

  • March 19, 2021
  • 1 reply
  • 0 views

Dear all,

 

I want to set up payroll in QBO and I am not sure about these setting on QBO;

 

1. Serveance (Taxable)

2. Pay in Lieu of notice (Taxable ,Pensionable, Insurable ,vacationable)

 

Can some one help me with this?

Thanks,

Zahra

1 reply

JenoP
JenoP
March 19, 2021

Hi there, zmaleki51.

 

QuickBooks Online Payroll does not have a specific setup or payroll item for severance and pay in lieu of notice. Although, you can add or use Other Earnings when paying the employee's final paycheck. This item is usually used for other taxable earnings that are separate from regular wages, such as retroactive pay increases and severance pay. 

 

Here's how:

 

  1. Go to the Payroll menu, then proceed to the Employees tab.
  2. Click the name of the employee and click the Pencil or Edit icon beside Pay.
  3. Under How much do you pay. . ., select Add additional pay types.
  4. Select Other Earnings, then enter the amount.
  5. Click Save or Done.

 

Let me also share these articles for additional details and reference:

 

 

The Community is always here if you need anything else. We're always here to help. 

Z
zmaleki51Author
March 19, 2021

Hi Jeno,

 

Thanks for your information ,

 

I see the this set up on QBO for Severance (attached image), but don't know the proper tax for each of them.

1. Severance (Taxable)

2. Pay in lieu of notice ( Taxable, pensionable, insurable , vacationable)

 

Can you guide me on this,please?

Thanks,

Zahra

 

L
LauraAB
March 19, 2021

Hello again Zahra,

 

It's great to see that you've made your way into the employee profile where you can add other payroll items. I know how vital it is to ensure that you've got the right tax tracking in place, and double checking on the kind of taxes you need and is also a good idea. I can point you in the right direction for this.

 

To ensure you know how your payroll items should be tracking and taxed, I recommend consulting the Canada Revenue Agency or Revenu Québec for any provincial-related questions since I see your screenshot shows Québec. While I can direct you to the features in QuickBooks Online and how to use them, I don't have the training to advise on taxes for payroll or other areas of your finances. Government agencies or payroll tax specialists would be able to guide you to make sure that the way things are set up in QuickBooks Online Payroll meets your filing needs. I also see you've tagged QuickBooks Online Accountant as your product for this post, so I encourage you to consult colleagues that may know as well.

 

If you have other questions about the Payroll module in QuickBooks, don't hesitate to ask. There's also the QuickBooks Online Payroll help article hub which goes over many of the staple tasks for payroll, such as setting up pay types, handling taxes, and more.

 

I hope you have a great weekend. :)

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