How do I create a severance earnings type in Zenefits Payroll?
Here's how to create a Severance pay item that is properly taxed as supplemental earnings.
Create Severance Pay Item
To create a Severance earnings type:
- In the Payroll app, choose Settings.
- Click Pay Type
- In the Earnings table, click +Add.
- Enter "Severance" as the Earnings Name.
- Choose Bonus or Commissions Earnings from the Earnings Category List.
- Click Save
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