We had an employee who sadly passed away last month. Our payroll provider marked his record with a death and payroll was processed as normal in the month. We would like to pay his wife 2 months of his salary. However, we can't put it through payroll now as his record is closed.
How do we treat this payment? Would we have to set up his wife as an employee, albeit briefly, and pay her and tax accordingly? I don't know her personal situation but if she is on benefits this would probably have an impact on them.