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9130347813861856
Level 1

How do I include a redundancy payment in payroll

 
10 REPLIES 10
MaryLandT
QuickBooks Team

How do I include a redundancy payment in payroll

Hello there, 9130347813861856,

 

I'm here to help include the redundancy payment in QuickBooks Online.

 

You'll want to add this payment through the employee profile. Let me show you how:

  1. On PaySuite, click onto the employee to open the Employee Settings page.
  2. Click the Leaver tab and enter the reason for leaving and the leaving date for the employee, then click Save.
  3. The employee will then show as Inactive on the employees list with the option to Download their P45.
  4. Click the down arrow next to Download P45, then select Payment After Leaving.
  5. You will then be taken to the Variable Input screen.
  6. Under the Payments (NON-TAXABLE) section, select Redundancy (Non Taxable).
  7. Add in the payment.
  8. Click Save Changes and the redundancy payment will then show on the payslip.

I've added these handy articles to help manage your employees:

Let me know if there's anything else you need concerning payroll. I'm always right here to help.

 

Thank you and stay safe!

AllyPallyPurple
Level 2

How do I include a redundancy payment in payroll

How do I record a redundancy payment in standard payroll online.

 

I don't appear to have items 4 onward as per instruction below?

 

Regards Alyson

Ashleigh1
QuickBooks Team

How do I include a redundancy payment in payroll

Hello AllyPallyPurple, 

 

The way in which to record a redundancy payment in standard payroll is 

 

Click into the employee

Click on action in green

Click on additonal pay 

Then scroll down on the list and you will see one that says redundancy - click on add 

Fill in the amount and save 

Then run the payroll 

 

They have to be an active employee in order to do this 

 

AllyPallyPurple
Level 2

How do I include a redundancy payment in payroll

Hi

 

Many thanks for your reply however I do not have the option of redundancy in my dropdown.

I only have the following:

 

Holiday in lieu
Any other taxable pay, such as commission or car allowance
 
Bonus
An extra payment for a job well done
Add
Car allowance
Any other taxable pay, such as commission or car allowance
Add
Commission
Any other taxable pay, such as commission or car allowance
Add
Expense reimbursement
Repayment for mileage or other business expenses (non-taxable)
Add
Mileage reimbursement
Repayment for mileage or other business expenses (non-taxable)
Add
Overtime
Pay for time worked beyond normal hours
Add
 
Which one of these should I use?
 
Kind Regards Alyson
GeorgiaC
QuickBooks Team

How do I include a redundancy payment in payroll

Hi AllyPallyPurple, 


Thanks for getting back to us on this thread. 

 

If you don't already see the account for Redundancy Payment setup, you can create this by selecting the Actions > Additional Pay > + > Select the option for Reimbursement (Repayment for mileage or other business expenses (non-taxable) > select add and then enter a name and amount for this.

 

Please get back to us below if you have any questions!

AllyPallyPurple
Level 2

How do I include a redundancy payment in payroll

Hi

 

Many thanks, I did wonder if that is what I should do.

 

Thank-you for your helpSmiley Happy

 

Regards Alyson

Linda116
Level 1

How do I include a redundancy payment in payroll

There is no redundancy non taxable on the list..just bonuses, overtime etc..what do I do

Kristine Mae
QuickBooks Team

How do I include a redundancy payment in payroll

You'll have to create the payroll item manually, Linda116.

 

You can follow GeorgiaC steps on how to create the redundancy payment.

 

Let me provide some articles that can help you depending on your subscription:

We're available 24/7. Please feel free to post anytime if you have other payroll concerns.

KR22
Level 1

How do I include a redundancy payment in payroll


@MaryLandT wrote:

Hello there, 9130347813861856,

 

I'm here to help include the redundancy payment in QuickBooks Online.

 

You'll want to add this payment through the employee profile. Let me show you how:

  1. On PaySuite, click onto the employee to open the Employee Settings page.
  2. Click the Leaver tab and enter the reason for leaving and the leaving date for the employee, then click Save.
  3. The employee will then show as Inactive on the employees list with the option to Download their P45.
  4. Click the down arrow next to Download P45, then select Payment After Leaving.
  5. You will then be taken to the Variable Input screen.
  6. Under the Payments (NON-TAXABLE) section, select Redundancy (Non Taxable).
  7. Add in the payment.
  8. Click Save Changes and the redundancy payment will then show on the payslip.

I've added these handy articles to help manage your employees:

Let me know if there's anything else you need concerning payroll. I'm always right here to help.

 

Thank you and stay safe!


Hi, I am looking at this and I can't do the above steps until I have actually processed the last payroll- P45 isnt available until the last payroll is submitted. Therefore I can't add the payment through the employee's profile. Do I:

Process payroll as normal

Include a additional payment type by setting up a new one and call it Redundancy payment

Submit payroll

Then do the above steps? If I do, does the payment appear on the p45? 

Angelyn_T
QuickBooks Team

How do I include a redundancy payment in payroll

Hello, @KR22.

 

Allow me to share additional insights into this topic.

 

Recreating the employee will not include the payment on P45. What you need to do for now is to reactivate your employee and create the last payment so the P45 will be updated and downloaded/printed correctly. However, I do encourage reaching out to our Support Team to make sure the process will be accurate and avoid any issues when generating tax forms.

 

To contact support, tap on the Contact us button from the Help menu. Or, check out the contact information from this link: Contact QuickBooks.

 

Also, feel free to read the topics from our help articles in case you need references while working with payroll or QuickBooks in the future.

 

I'm a few clicks away to help if you have any other questions. Just add a comment below, @KR22. Keep safe always!