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Termination Payrun |
  
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Termination Payrun |
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This situation applies if this is the final payrun for an employee and their employment is being ceased. If the employee is a casual then the pay will only usually involve normal hours worked. If the employee is entitled to accruals (e.g. full and part timers) then in addition to normal hours, there could be various termination payments as well.
A termination pay for an employee can be carried out amongst other employees in a "normal" usual payrun. Essentially you are just entering the pay envelope in a unique way.
NOTE: Before carrying out the termination payrun, check that the payrun dates etc. are correct (see Individual Payrun)
Accessing an employee's pay envelope during a termination payrun is achieved in a unique way, as per the following:
1. Click on the 'PayDay' button from the main window, which takes you to the Payrun List.
2. Highlight the name of the employee you wish to terminate from the Payrun List (if not highlighted, the arrow should be to the left of this particular employee's name).
3. Click on the 'Terminate' button, situated at the top of the Payrun List Window.
4. A message will appear asking you to confirm the termination of this particular employee. To proceed, select 'Click here to TERMINATE this Employee'.
5. You will then be prompted for a termination date and then click the 'OK' button. (This date is simply for the employee's records only. It does not have any purpose for taxation calculations during the payrun process). You are now at their pay envelope.
The reason we enter an employee's pay envelope in a special way during their termination payrun is to gain access to certain pay rates applicable to termination pay that are not available during a conventional payrun.
Once in the pay envelope, the first order of business is to pay the employee for any time worked in this pay period. This will update the accrual balances to the top right of the pay envelope.
Secondly, if any termination payments need to be made this is done via pay rates as well. In other words, to pay out the annual leave, for example, you add another pay rate in the pay envelope. If long service is also to be paid out you might end up with upto 3 extra pay rates that need to be used.
The following links detail which pay rates to use
1. Bona fide redundancy, approved early retirement and invalidity
2. Termination on other grounds, eg. retirement, dismissal, voluntary resignation, abandonment