How to Create Termination Check in QuickBooks
There are aseparate set of state rules that governs the termination checks. These rules decide when employees must be paid at the time they leave the organization because of layoff, discharge or resignation.
These requirements make sure that employees receive all pending wages till their last day of employment. More information can be collected from your state regarding wage payment requirements for involuntary termination and/or voluntary resignation.
Termination checks are liable for normal tax deductions, including federal taxes and state taxes.
- For QuickBooks Desktop Payroll Assisted users, you need to send termination check payrolls to Intuit for tax processing before your tax deposit is scheduled.
- If employees are paid for Termination check using Direct Deposit, a payroll must be sent to Intuit by 5:00 p.m. 2 banking days before the check date. This time, is utilized by Intuit for processing in order for the Direct Deposit funds to be transferred to your employee’s account on the check date.
Points to Remember
You will not be charged for a late payroll processing fee in the following two conditions:
If the release date of an employee is the same as the check date
The paycheck date is today or earlier.