QuickBooks is an accounting and financial tool used to manage company file data in an organized and easy way. QuickBooks can be used to manage payroll of employees, inventory stock, customer data, payments, offers and much more. Quickinfy provides you detail overview of How to create a final paycheck for a terminated employee in QuickBooks
There are different steps which can be used How to create a final paycheck for a terminated employee. Whether an employee quits, resigns or retires, discharged or fired employer must pay those in accordance with the law. As a small-business owner, there are some certain rules that you must consider while paying final wages to your employees.
With QuickBooks, you can create termination pay when your employee leaves the company. By doing this you can enter a release date for the employee and edit the termination paycheck information. This will also inform QuickBooks software that the employee will no longer need regular, scheduled paychecks in the future.
What are termination checks?
Termination checks are set of rules set by the states showing when employees separate from employment because of discharge, layoff, or resignation the employees must be paid. Now in the below post we will discuss How to create a final paycheck for a terminated employee
Steps – How to create a final paycheck for a terminated employee
Step 1: Open the Payroll Center. You need to click the Pay Employees tab,
Step 2: Under the Other Activities click on Create Termination Check.
Step 3: Open the Enter Payroll Information window, enter the Pay Period Ends and Check Date.
Step 4: Confirm the correct bank is chosen which is Next to Bank Account
Step 5: Place a checkmark next to the employee(s) to be paid a termination paycheck.
Step 6: A Calendar icon will appear while Clicking on the Release Date column next to the employee.
Step 7: Select the employee release date by clicking the Calendar icon
Step 8: Select the correct reasoning from the ROE Code drop-down
Step 9: In this step enter the hours worked for each terminated employee or verify the Total Hours or Salary amount.
To preview or modify paycheck details, follow steps below:
- Click on Continue
- The Make Employees Inactive window will open on your screen.
- Click on Make Inactive to make the employee inactive or Keep as Active to keep the employee on the active employee list.
- In the Review and Create Paychecks window, review the net pay, employer taxes, deductions, and contributions. If you wish to review or change these amounts, you can click the employee’s name.
- Click on the option of Create Paychecks.
- The new window displaying Confirmation and Next Steps will open on your screen.
- Based on payroll service, you need to follow the steps provided to you by QuickBooks Desktop.
- If you have QuickBooks Desktop Payroll Assisted or use Direct Deposit, you will also be prompted to send your payroll to Intuit for processing (applies to the US only).
Steps – To Pay the employee with a final paycheck
Above we have discussed How to create a final paycheck for a terminated employee in Quickbooks and now check out the steps for pay the employee with a final paycheck.
- The first step is to click on Employees.
- The second step is to click on a Run payroll.
- You need to Select the checkbox next to name of the employee you’re terminating
- Enter pay information for the final paycheck.
- Make sure that all other employees are unchecked.
- Click on Preview payroll.
- Verify the information once, and then click on Submit payroll.
- Click on Finish payroll
Steps – To Change the status of the employee
Hope you have known How to create a final paycheck for a terminated employee. Now let us check out steps to change the status of the employee
- Click on Employees in the left navigation bar,
- You need to Double-click on the employee name.
- Click on the pencil icon next to the Employment section.
- You need to Select Terminated from the Status drop-down list.
- Click the Show in non-payroll lists checkbox if you don’t want the employee to appear in QuickBooks Online employee reports or lists.
- Finally, Click on Done
Steps – To Remove the employee from the list of people you pay
After discussing How to create a final paycheck for a terminated employee, let us check the steps to remove the employee from the list of people you pay:
- In the left navigation bar, click Employees.
- Click the employee’s name, and then click Edit employee.
- Click Employment at the top of the employee’s page.
- Select the Terminated from the Status drop-down.
- You need to Optionally, enter the Termination date — the employee’s last workday.
- Finally, Click on Done.
- In the left navigation bar, click on Employees option.
- You need to Click on the drop-down arrow above your employee list to change your view. For example, change it from Active employees to Inactive employees.
Quickinfy provides all the details about How to create a final paycheck for a terminated employee. Hope the above information will help you a lot in getting knowledge about the final paycheck. If you need any information related to this or if you have any query related to it you can surely contact the QuickBooks support team. There are a number of ways of contacting them such as online chat, toll-free number and sending them emails.