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December 31, 2025
Question

How to process final termination pay?

  • December 31, 2025
  • 1 reply
  • 2 views

28 hours of wages plus small vacation accrual is owed to employee who resigned, can this be done on final payroll process?

1 reply

QuickBooks Team
January 1, 2026

Hello Adrian,

 

Yes, you can absolutely include both the 28 hours of wages and the vacation accrual payout in the same final.

 

Here's how to process the final paycheck:

 

  1. First, go to Payroll and select Employees.
  2. Then, click Run Payroll to start your payroll run.
  3. Next, enter the 28 hours in the regular hours field for your employee as you would.

 

For the vacation payout, you'll need to add it as a separate pay type.

 

Here's how:

 

  1. Click on the employee's name in the payroll run, then select  Additional Pay Types.
  2.  Click the Add option to include vacation pay.
  3. Enter the accrued amount.
  4. Once you've entered both the regular hours and vacation payout, review the totals to ensure everything is correct.
  5. Then, complete the payroll run as usual by clicking Submit Payroll.
  6. After the paycheck is processed, go to Payroll, then Employees. Click on the employee's name to open their profile.
  7. Look for Employment Details, then update their status to Terminated. Make sure to enter the correct last day of employment.

 

If you need anything else, let us know in the comments. We're always here to help.