Then make plans to do this shitty job in as kind and professional manner as possible.

That means NOT stringing people along. Sit down and figure out whether you're going to be able to keep people employed at 100% of their current pay and benefits. If you know you can't, then the biggest favor you can do for them is to lay them off quickly so they can start looking for a new job immediately.

If you can make some calls to get them leads at other places that's great, but the most helpful thing you can do for them is to let them go as soon as you know that they have no future at your company.

I've done firing and layoffs and I know it's hard. Delaying it makes it all much worse, for you and the departing employees.

Can't you wait till he gets back so he can have a good vacation?...Although I've seen the whole "got fired upon returning from vacation" thing happen a few times. That sucks too! Sorry for both of you.

Apparently you missed the part about not meeting payroll. There are few things worse( legally, in employment law )than missing payroll.

Ugh. I remember what it was like the first time the 2000-era dotcom I was at missed payroll. A co-worker and I had taken the day off to take our kids to the state fair, and found our money wasn't where we thought it would be. They announced the payroll shortfall the day it happened, in company email we didn't read because we were off that day.

Kinda sucked.

I've alerted firms that missed payroll of the law violation via a couriered legal notice from a labor lawyer. I got my money when nobody else did.