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Level 1

How do you run a payroll for just one person who is no longer working?

 
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QuickBooks Team

How do you run a payroll for just one person who is no longer working?

Hi there, @ tiffanie-railexp.

 

In QuickBooks Online, you have two options on how to create a severance check. Enter a bonus only/commission only paychecks or through regular/unscheduled paycheck.

 

Based on the scenario, run the regular payroll and then make the severance pay for the employee. The process differs depending on the option selected.

 

Before doing so, you'll have to make your employee's status active again. Here’s how to make a bonus check to use for severance.

 

  1. Go to the Workers menu on the left panel to choose Employee.
  2. From the list, click on the worker’s name to access its profile.
  3. Tap the Pencil icon for Employee details.
  4. In the  How much do you pay section, hit the Pencil icon for Additional pay types
  5. Another window will open where you can mark the box for Other Earnings. This will display another field box.
  6. Enter Severance pay as the item name and the amount in the field box. Click Done.

 

Now that the item is already setup, let’s create the paycheck.

 

  1. Go to the Workers menu on the left panel and choose Employee to select Run Payroll.
  2. Mark the radio button for the payment schedule and hit Continue.
  3. Select the employee you’re working on and then key in the severance pay amount and vacation/sick pay hours.
  4. Pick the salary amount and then choose Skip salary this time only or leave the total hours field blank if you don’t want to include the regular pay.
  5. Press the Pencil icon beside the total amount to overriding the Federal Income Tax. Input the withholding amount calculated based on supplemental tax rates.
  6. Click Preview payroll. Choose Submit payroll and Finish Payroll.

 

However, if you opt to create a termination check, see the Create final employee paychecks guide. It provides an overview of how to make one as well as links for detailed instructions.

 

 Let me know if you need further assistance while working in QBO. I’ll be right here to help and make sure you’re taken care of. Have a great rest of the day.

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