How to create a new income for severance pay

 NOTE: Consult with your accountant to confirm whether or not your employee is entitled to severance pay.

Create new income

1. Go to Setup, Settings, Payroll, Income.
2. Select an unused income and rename it to 'Severance'.
3. Change Type to Income.
4. Uncheck all columns except for Calc. Tax.
5. Select Linked Accounts under Payroll, Income.
6. Add a linked account for Severance income.
7. Click OK to save.

Update employee record

1. Go to Employees & Payroll, then Employees.
2. Double-click an employee name to open the Employee Records.
3. Select the Income tab.
4. Put a checkmark in the Use column beside the Severance income.
5. Click Save and Close. 

How to create a new payroll income or deduction