How do I terminate an employee with a lump sum payment?

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Question

How do I terminate an employee with a lump sum payment?

Answer

To terminate an employee with a lump sum payment in QuickBooks work through the following steps;

1) When preparing the employees pay, in the 'Preview Payment' screen an additional amount will need to be added to the 'Other Payroll Items' area.
2) Select an item called 'Lump Sum A' and enter the appropriate rate and quantity for the employees payout.
3) Continue to process the pay in the usual manner.

The lump sum payment has now been added to the employees last pay.
To terminate the employee;
1) Right click on the employee in the 'Employee List' and select 'Edit'.
2) Enter the date the employee has left in the 'Left' field.
3) Click 'Ok' to save these changes.
4) In the 'Employee List' right click on the employee and select 'Make Inactive'.

The employee has now been terminated and made inactive.

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