If you’re terminating an employee, you’ll typically either give them notice, or pay them in lieu of notice. To pay them in lieu, create a timesheet with no hours. Calculate what you would have paid them if they had worked out their final weeks with the company. This number goes in the payment in lieu field.

This field is taxable. It appears on the cheque under timesheet earnings.

Taxes, EI, and CPP are all calculated on the amount and deducted from the employee’s pay.