How do I account for a redundancy payment in Quickbooks online?
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Hi Jadzey,
Thank you for contacting the Community.
On PaySuite click onto the employee to open the Employee Settings page. Click the Leaver tab and enter the reason for leaving and the leaving date for the employee and click Save. The employee will then show as Inactive on the employees list with the option to Download their P45.
Click the down arrow next to Download P45 and click Payment After Leaving. You will then be taken to the Variable Input screen. Under the Payments (NON-TAXABLE) section you can select Redundancy (Non Taxable) and and then add in the payment. Click Save Changes and the redundancy payment will then show on the payslip for the leaver.
Please let me know if there is anything else I can help with.
Hi Jadzey,
Could I please confirm whether you are using our Payroll system to do this? If you are could I also check which version you are using if you have PaySuite this will show Powered by PaySuite in the top right of your Payroll if not you should see Payroll and Employees at the top of your Dashboard you will have QuickBooks Online Payroll? If you are not using Payroll you could use a standard expense. Please let us know and we can help you further.
Please let me know if there is anything else I can help with.
Hi Jadzey,
Thank you for contacting the Community.
On PaySuite click onto the employee to open the Employee Settings page. Click the Leaver tab and enter the reason for leaving and the leaving date for the employee and click Save. The employee will then show as Inactive on the employees list with the option to Download their P45.
Click the down arrow next to Download P45 and click Payment After Leaving. You will then be taken to the Variable Input screen. Under the Payments (NON-TAXABLE) section you can select Redundancy (Non Taxable) and and then add in the payment. Click Save Changes and the redundancy payment will then show on the payslip for the leaver.
Please let me know if there is anything else I can help with.
I am using QuickBooks online payroll and although I’m in employee setting there is no leaver tab.
can you please provide the answer for the system I am using in the UK please
regards
diane Porter
Hello @DP200749,
Let me help share the steps in setting up your employee's leave or sick pay in QuickBooks Online depending on your payroll system.
To start with, here's how you can set it up when you're using the standard payroll:
In addition, here's an article you can read to learn more: Process a leaver in QuickBooks Online Standard Payroll.
Meanwhile, let me show you the steps in setting it up when you're using the advanced payroll:
Additionally, I've got you this article to learn more: Entering leave taken in QuickBooks Online Advanced Payroll.
Lastly, I've also included these helpful articles to learn more about the reference you can utilize while using your online payroll system:
If there's anything else that I can help you with, please let me know in the comments. I'll be here to help. Stay safe!
I am using standard quickbooks online payroll how do I make a redundancy payment? I have already run payroll this month and have set the leaver as having left through redundancy, I can see a PDF of his P45 how do I record and make a redundancy payment?
Hello JD101170,
Welcome to the Community page,
Can we just ask you was the redundancy payment paid in the period when they left or was it paid in the next period after they left?
If it was after they left it cant be done in standard, you would have to use basic tools and record it as an expense.
If it was paid in the period that they left then you would need to roll back the payroll and include the payment then run the payroll forward again.