Payments to Terminated Employees to reflect on Payroll

Hi ,

              Is there a way to pay a terminated employee through payroll, so that the payments reflect on W2?

       I know that Expense reports can be processed for terminated employees if the Final Process Date is extended. But as we cannot print 1099 reports, for legal settlements of terminated employees under 600$ in oracle, we are manaully processing the forms for terminated employees.

    Any help around the area will be helpful.

Thank You,

Naga