How do I cut a termination check?

Let me assist you with creating the final paycheck for your terminated employee, Office323.

In QuickBooks Online Payroll, you can issue a termination check by processing it as the employee’s final regular paycheck within your scheduled payroll cycle.

By selecting the regular payroll schedule and manually entering the pay period and pay date corresponding to the termination date, you can run payroll that includes the final wages, accrued PTO, and other termination-related payments.

Here's how:

1. Go to Payroll, then Employees.
2. Select Run Payroll.
3. Choose your desired payroll schedule, then click Continue.
4. Select the employee you want to pay.
5. Enter their hours, compensation, memos, or other necessary paycheck info.
6. Under the Pay Method dropdown, select either paper check or direct deposit.
7. Select Preview payroll and Continue.
8. Review the payroll details, then hit on Submit payroll.

If issuing a termination check within the scheduled payroll cycle isn’t applicable in your situation, I recommend running a regular payroll with the pay period and check date set to the employee’s termination date. Manually enter the final wages, accrued PTO, and other termination-related payments. This approach ensures QuickBooks Online Payroll calculates the correct taxes and deductions for the final paycheck.

For your convenience, here is a helpful article on removing the employee from your active employee list so you won’t be billed for them anymore: Terminate or change your employee's status on payroll.

The Community Team is always here to assist if you have further questions about running payroll in QuickBooks Online or any other program-related inquiries, Office323. Please feel free to use the comment section below.