Re: I want to pay a severance payment to a terminated employee in Canada (retiring allowances). N...
It's important you're abe to create a final cheque for your employee and I'll be happy to assist you with this.
There are two ways to create a severance paycheque:
Option 1: Create severance pay as bonus only paycheques or commission only paycheques.This option lets you use the supplemental withholding tax rates. You won't be able to enter vacation or sick pay hours using this option. .
Option 2: Create severance pay as a regular paycheque or unscheduled paycheque. With this option, you can add vacation and sick pay hours but the option to choose which supplemental tax rate to use will not be available.
Since Option 1 works best with what you've described, I encourage you to check out this article which shows you how to create a bonus cheque instead. Here's the link: How to create a bonus pay cheque.Give this a try and let me know how you make out. I'll be on standby.