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JanJaw
Level 3

How to create final paycheck salaried plus PTO on DESKTOP version

DESKTOP version...My one and only employee is leaving.  He is salaried but only working a fraction of the pay period.  In addition he is entitled to unused PTO vacation pay of 7 days.  (Please don't provide answers or links for online versions).  How do I process his termination check and calculate the fraction of the month?  All answers are leaving me frustrated.  I followed directions using termination check after calculating the prorated portion of his salary for the pay period, but when I looked at the paycheck detail, it is still paying the entire salary and showing my prorated amount in the hours section.  It makes no sense.  And if I need to pay my employee 7 unused PTO days on top of this do I create a separate check or enter a separate line and simply calculate 7 days x 8 hours x rate of pay by the hour?, and if so, how are correct taxes deducted from this?  Instructions please and I emphasize this is a DESKTOP question.

Solved
Best answer September 07, 2021

Best Answers
BigRedConsulting
Community Champion

How to create final paycheck salaried plus PTO on DESKTOP version

I'm not sure what the instructions you saw said to do, but here's how to do it:

- Start the process to create paychecks and then click on the employee's name to open the paycheck detail preview window.

- At the top of the window, replace the normal salary amount with the amount you've calculated by typing over it.

- Add an hourly PTO item (not salary) to the earnings table. Enter the imputed salary rate of pay and the hours for 7 days of PTO. This will then add to the salary (where if you use a salary PTO it won't.)

 

Note that typically to calculate the imputed rate of pay, divide the daily salary amount by 8 - or whatever you consider a day's work for a salaried employee. Then for the PTO item on the check, enter the rate you arrived at and that many hours per day you're paying.

 

It could look like this when you're done:

In this case, the employee worked for a week of the month and the resulting pro-rated salary is $2,000.

So, the imputed hourly rate is $50 per hour ($2,000/40 hours).

And so, after adding the PTO item I set up and entering that rate and 56 hours (8 hours * 7 days), $2,800 is added to the paycheck as extra earnings:

Capture.JPG

 

 

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2 Comments 2
BigRedConsulting
Community Champion

How to create final paycheck salaried plus PTO on DESKTOP version

I'm not sure what the instructions you saw said to do, but here's how to do it:

- Start the process to create paychecks and then click on the employee's name to open the paycheck detail preview window.

- At the top of the window, replace the normal salary amount with the amount you've calculated by typing over it.

- Add an hourly PTO item (not salary) to the earnings table. Enter the imputed salary rate of pay and the hours for 7 days of PTO. This will then add to the salary (where if you use a salary PTO it won't.)

 

Note that typically to calculate the imputed rate of pay, divide the daily salary amount by 8 - or whatever you consider a day's work for a salaried employee. Then for the PTO item on the check, enter the rate you arrived at and that many hours per day you're paying.

 

It could look like this when you're done:

In this case, the employee worked for a week of the month and the resulting pro-rated salary is $2,000.

So, the imputed hourly rate is $50 per hour ($2,000/40 hours).

And so, after adding the PTO item I set up and entering that rate and 56 hours (8 hours * 7 days), $2,800 is added to the paycheck as extra earnings:

Capture.JPG

 

 

JanJaw
Level 3

How to create final paycheck salaried plus PTO on DESKTOP version

Excellent!  Exactly what I needed as a tie breaker to the multiple methods I had been exploring.  Thank you so much.

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