How do I pay an employee that is leaving

I have a way to help you run a payroll for a terminated employee for the specific pay period, TomKirk.

I'll guide you on how:

1. Sign in to your QuickBooks Online (QBO) account.
2. Choose Payroll, then select Employees.
3. Click Run payroll.
4. Find the employee you want to pay, and then select Create another check.
5. Enter employee compensation, including any salary adjustments, vacation or sick hours, and other payment types.
6. Confirm the pay period and check date.
7. Select Preview Payroll, and then select Submit payroll.
8. If you're creating a paper check, handwrite or print the check and give it to the employee by the check date.
9. Click Finish payroll.

Furthermore, you can refer to this article for more detailed information about creating a termination check for an employee: Terminating an employee in QuickBooks Online Advanced Payroll

Additionally, if you need to edit your employee's details from time to time from QuickBooks Payroll, you can check out this article: Edit employees in QuickBooks Online Standard Payroll.

I'll be around if you have other questions about paying terminated employees in QBO. Don't hesitate to leave a reply in the comment section. I'm always here to help.

Thanks for the response, I am using Quickbooks in the UK and do not have the option to create another check.

Is there no way for Quickbooks to terminate the employee and calculate the pay based on their last day?

Hi Tom, thanks for getting back in touch on this thread

We'll be happy to share some further information on terminating an employee in QuickBooks Online Payroll. 

So that we can share some specific steps, please confirm the version that you're using: Core or Advanced.

I have quickbooks core with Quickbooks Plus

Hi BarnsleyBadger To be able to terminate an employee using the Core payroll system you'd have to first include and run them in the payroll, I appreciate that you've stated that you've already updated the employees status to terminated however you'll have to change this, but don't submit the FPS, change the employees status to terminated and then when you're ready, submit the FPS.

If I follow this action and the employee leaves mid-month, will they be paid for days they haven't worked?

Hi BarnsleyBadger Yes, it would pay the employee their normal wage for the payroll period, you would have to make any adjustments to the employees wage before you ran the payroll.

HI.  My employee leaves today.  My normal payrun is due 30/08/24.

He is paid hourly.  I have entered his final hours to his finish and saved.  If I now change his status to terminated, will he still be included in the FPS when I run payroll for 30/08/24?  Will I still be able to produce a payslip and then p45 for him?

Your instructions on the help screen are not at all clear.

Thanks.

Hi DJL Thanks for reaching out to us here on the Community. We presume that you're also using the Core payroll system, therefore you would include the employee who left today in the payrun when you usually run it, in this instance the 30th of August, along with the other employees. You wouldn't submit the FPS at this point, you would first change the status of the employee to terminated and then submit the FPS.

Did anyone find out how to resolve this for UK Core Payroll customers? We have an employee whose last day of work is 20th December. We will be breaking the law by paying this employee after 20th as she is on a work visa which runs out on 21st. I cannot run payroll with her paid to the end of December. Why would a supposed 'upgrade' to a payroll system remove part of the payroll system (let's not mention the fact that historic payroll data hasn't migrated to the new system and that the pension information carried forward is incorrect for all employees who have opted out).

Quickbooks help - you need to provide a clear resolution for this problem that HMRC will accept for employees who leave before the end of a payroll period. 

I recognise that timely payment to your employee is essential for your compliance with HMRC, info608. We’ll need to run the final payroll and update the employee’s status to address this issue effectively.

Since the employee's last day is December 20th, you'll need to create a final paycheck for her. You can do this by running an unscheduled payroll. Here's how:

When you are ready to run payroll, follow the steps below:
 

1. Navigate to the Payroll menu on the left panel and choose Employees to open the Employees screen.
2. From there, click the Run payroll button and pick the correct date range from the Pay period drop-down, as well as the Pay date.
3. Click the Preview payroll button and Submit payroll.

After you complete the final paycheque, change the employee’s status to Terminated to avoid future charges. Also, provide the P45 form. For more detailed instructions, take a look at this article: Issuing P45 forms in QuickBooks Online Core Payroll.

For your other payroll issue, I suggest reaching out to our Payroll Support Team. They can look into why the payroll data hasn't been transferred to the new system and why the pension information for employees who opted out is showing incorrectly.

Explore our handy guides that will help you navigate the important features of QuickBooks Online Core Payroll. These resources include articles and detailed instructions to help you fully utilise the payroll service:

• QuickBooks Online Core Payroll | Resource Hub
• Navigating QuickBooks Online Core Payroll
  
  

Stay in touch if you have other payroll or accounting-related concerns or queries. We'll get back to you and provide the help you need

are you saying i need to run two separate payrolls? One for the employee leaving on 20th and then run it again for the other employees who remain employed and will therefore be paid as normal?

Hi, info608. I'm here to answer your questions and ensure you can run payroll correctly.

Beforehand, I'd like to know if that one employee who will leave this December 20th and the rest of your employees are using the same pay schedules.

If so, we'll have to run two separate payrolls for a leaver employee and the normal employees. This way, we won't run payroll in advance for all the remaining employees. I'll guide you on how.

First, mark the employee as a leaver. To do so, open their profile, tap the down arrow under his name, and select Mark as leaver. You’ll be prompted to enter the Leaving date (December 20th) and the Reason for leaving.

Once done, let's run a final payroll for that specific employee. Here's how:

1. Go to Payroll and select Employees.
2. Select Run payroll.
3. Check the pay date. You can select the calendar to change when your employees get paid. Remember, the pay date must fall within the tax period.
4. Verify the list of employees and remove those not part of that pay run. Leave only the one who left.
5. Add the correct salary, additional payments, or deductions.
6. Once done, review the details and submit payroll.

After that, you can view and print the P45 form. Here's an article to guide you through the process: P45 forms in QuickBooks Online Payroll. It also contains steps when an employee leaves your business.

For your guidance in properly handling an employee leaving your company, please see this article: What to do when an employee leaves.

Once it's time to pay the rest of your employees, you can process the payroll normally.

Finally, as the tax year draws to a close, it's essential to ensure your books and payroll data are well-organised. These resources provide the necessary steps to get everything sorted in your QuickBooks Online account so that you can start the new year off smoothly: 

• Year-end guide for QuickBooks Online
• Year-end guide for QuickBooks Online Core Payroll

Please keep in mind that I am here to help if you need more guidance with processing payroll in QuickBooks. You can reach out by clicking the Reply button and tagging my name.