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Community Contributor *

Final paycheck for CA employee who left midway through the month with health and dental coverage

One of our employees recently left and I need to cut his final paycheck. He worked midway through the month, and had health and dental coverage. Previously before we added medical and dental coverage I would have cut the final paycheck when someone left and that would be it, however this has added a new wrinkle.

 

As his next paycheck would have included the insurance deductions, do I prorate for the portion that he won't be covered for since he left, or he is still on the hook for his portion remaining as the coverage is through the month? If I need to inform him of his options now that he will be losing coverage starting in April, please advise also.

2 Comments
Moderator

Re: Final paycheck for CA employee who left midway through the month with health and dental coverage

Thanks for the details, 51Mustang.

 

Let me share some insights about your employee's insurance deductions.

 

We are unable to advise whether the insurance deduction should be prorated on the final paycheck. I suggest consulting your insurance provider for confirmation on if you can prorate the specified employee.

 

Once you've got the information, you're now ready to create the employee's final paycheck.

 

Let me show you how:

  1. Select Employees at the top menu bar.
  2. Under Pay Employees, choose Termination Check.
  3. Choose the employee's name and select the Release date.
  4. Enter the Total Hours or Salary amount.
  5. Click Open Paycheck Detail.
  6. Under the Employee Summary section, update the Health Insurance deduction if needed.
  7. Add the complete details of the paycheck.
  8. Click Save & Close.
  9. Select Continue.
  10. The Make Employees Inactive window will open. Select Make Inactive to make the employee inactive or Keep as Active to keep the employee on the active employee list.
  11. Select Create Paychecks.

The screenshot below shows the fifth to eighth steps.

 

image.png

 

For the detailed steps, please refer to this article: Create termination paycheck in QuickBooks Desktop Payroll.

 

I'd like to make sure that you're able to resolve this concern, so please let me know how it goes by posting a comment below. Best regards.

Community Contributor *

Re: Final paycheck for CA employee who left midway through the month with health and dental coverage

Thanks, I ended up making the employee inactive first then went through the process, adjusting the deductions.