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terri16
Level 1

We have an employee we need to pay severance pay for 1 week (income tax,CPP,EI,vacation pay and WSIB.) As well as 2 more weeks (income tax,CPP,EI but no vacation or WSIB

 
3 Comments 3
JamesM
QuickBooks Team

We have an employee we need to pay severance pay for 1 week (income tax,CPP,EI,vacation pay and WSIB.) As well as 2 more weeks (income tax,CPP,EI but no vacation or WSIB

Hi terri16,

 

 

Thanks for posting your question in the Community. As you know, severance pay is a payment package offered to employees based on certain length of service and salary requirements.

 

There are two ways to create a severance paycheck:

 

Option 1: Create severance pay as bonus paycheques or commission paychecks.

 

Option 2: Create severance pay as a regular paycheque or unscheduled paycheque. With this option, you can add vacation and sick pay hours but the option to choose which supplemental tax rate to use won't be available.

 

Let me know which option you choose to go with and I'll be here to assist. Feel free to ask questions. :) 

 

 

 

smollstub13
Level 2

We have an employee we need to pay severance pay for 1 week (income tax,CPP,EI,vacation pay and WSIB.) As well as 2 more weeks (income tax,CPP,EI but no vacation or WSIB

I also have this scenario except we are paying 3 weeks severance on top of usual 2 week paycheque.

Wondering how to do this so the severance amount does not accrue vacation pay.

 

Thank you :)

terri16
Level 1

We have an employee we need to pay severance pay for 1 week (income tax,CPP,EI,vacation pay and WSIB.) As well as 2 more weeks (income tax,CPP,EI but no vacation or WSIB

We broke his last pay cheque into two parts.  We paid the 1 week using his regular pay method.  For the two weeks of severence pay, we used the "other earnings" box.  Other earnings doesn't pay vacation pay but does subtract the taxes.

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