Hello there, John. To process a redundancy payment for an employee who has already been terminated in QuickBooks Online Advanced Payroll, I recommend setting up a dedicated pay category for the redundancy payment, as well as a separate one for statutory redundancy pay.
You can follow these steps:
- Go to the Gear icon and hit Payroll settings.
- Select Pay Categories. You’ll see a list of common pay categories.
- Click Add and enter the Pay category name.
- Complete the required fields, then click Save.
Once configured, you can include these categories as the Primary Pay Category when processing the employee's final paycheck.
Keep in mind that the first £30,000 of statutory redundancy pay is tax-free. Specific deductions will vary based on the components of the employee's termination package.
For a seamless process, I suggest consulting your accountant. They can provide guidance on recording these payments correctly and advise on how to offset them against profits for tax purposes.
Additionally, for more detailed assistance, consider reviewing this resource for invaluable aid in managing the termination effectively: Managing employees in QuickBooks Advanced and Bureau Payroll.
Let us know if you have more questions or need further assistance.
