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lois-911
Level 1

Can i change someone's salary amount for one payroll

It is their final chq and they only worked one week. they will also be paid severance pay on this chq

1 Comment 1
jamesjdt
Moderator

Can i change someone's salary amount for one payroll

Hi, lois-911.

 

Yes, it’s possible to prorate the employee’s final paycheque and incorporate severance pay. I’ll assist you throughout the process, ensuring everything runs smoothly.

 

Let's start by calculating the employee’s prorated salary for one week using this formula:


(Annual salary ÷ Total work weeks in a year) × Weeks worked


For example, if the employee’s annual salary is $52,000 and they worked one week, the prorated salary would be:
($52,000 ÷ 52 weeks) = $1,000 for one week

 

Next, you’ll need to set up an Other Earnings pay type in the employee’s profile. Here's how:

 

  1. From the Employees list, click on the employee receiving the final paycheque.
  2. Go to the Additional pay types section, then click Add.
  3. Select the following options:
    • Pay types: Choose + New pay type
    • Name: Assign a name for the severance pay
    • Type: Select Other Earnings
  4. Enter the severance pay amount and any other necessary details, then click Save.

 

Afterward, return to the Employees page and click Run Payroll to process the employee’s final paycheque. Ensure the final paycheque includes both the prorated salary and severance pay. For detailed instructions, you can refer to this article: Create paycheques for all employees in QuickBooks Online Payroll.

 

After processing the final paycheque, adjust the employee’s status to Terminated. You can found the detailed instructions here: Terminate or change your employee's status in payroll.

 

Finally, generate the employee's Record of Employment (ROE). You can visit this article for more information: Create a Record of Employment (ROE) in QuickBooks Online.


Please don't hesitate to reach out if you need additional assistance.

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