How to Create Termination Paycheck in QuickBooks
In this tutorial, you will learn how to create termination paycheck in QuickBooks.
Step by Step Process to create termination paycheck in QuickBooks
Go to the Payroll Center select the Pay Employees tab, look at the bottom of the page, Go to Other Activities choose Create Termination Check.
Go to the Enter Payroll Information window, input the Pay Period Ends and Check Date. To escape from a late fee, the Check Date must be dated today or a future date.
Next to Bank Account mark the correct bank which you have chosen.
Mark the employee(s) to be paid a termination paycheck.
Select the Release Date column next to the employee. A Calendar icon will appear.
Select the Calendar icon and choose the employee release date.
Input the hours worked for each terminated employee or certify the Total Hours or Salary amount. To preview or alter paycheck details, follow the given steps:
1. Mark the employee’s name.
2. Go to the Preview Paycheck window, input or modify paycheck information.
• Incase the employee uses Direct Deposit, validate that the Use Direct Deposit box is marked appropriately. If you do not wish the paycheck to be direct deposit, click to clear Use Direct Deposit.
• If you do not needthe vacation and sick to accrue on this specific paycheck, mark the box to Do Not Accrue Sick/Vac.
3. Select Save and Next to proceed to the next employee or Save and Close to go back to the Enter Payroll Info window.
4. Select OK to return to the Enter Hours screen.
You will be navigated to the Make Employees Inactive window. Select Make Inactive to make the employee inactive or Keep as Active to retain the employee on the active employee list.
Go to the Review and Create Paychecks window, go through all the taxes, contributions, net pay, employer taxes and deductions. If you wish to change these amounts or review them again, you can click the employee’s name.
Select Create Paychecks.
You will be navigated to the Confirmation and Next Steps window. Depending on your payroll service, Desktop QuickBooks will provide you the next steps.
QuickBooks Desktop Payroll Assisted or Direct Depositusers will be prompted to send their payroll to Intuit for processing.