Terminating an employee
Terminate an employee from within a pay run by following these steps:
- Create the termination pay run
- Click on the name of the employee to be terminated in order to expand their details
- From the "Actions" menu for that employee, select the "Terminate Employee" option
A pop up will appear as follows:
From here you will need to enter the employee's termination date. You will also have the option of selecting a termination reason before clicking 'Save'.
The employee's record will turn pink (as an indicator it is in termination mode) and will display calculated earnings and any accrued leave to be paid out as part of the termination pay.
With regards to the section on 'Leave Taken':
- Any leave category setup to be paid out on termination will automatically be calculated as part of the termination pay. If you do not wish for this to occur, deselect the 'Pay out' option;
- If any leave loading associated with a leave category (for eg annual leave loading) is to be paid out you will need to select the 'Apply x% loading' checkbox;
- If you want to pay out a balance for an associated leave category that does not have the 'Pay out' option automatically selected, you will need to manually select this option;
- Any leave categories setup to not accrue automatically will not appear in this section.
N.B. If the employee is set up to be paid default standard hours each pay and is terminated mid-pay period then the employee's hours will automatically be re-calculated on a pro-rata basis. We strongly suggest you double check these hours to ensure they are correct.
Once you have finalised the pay run, this employee will no longer be active or eligible to be included in future pay runs and the employee line will be highlighted red.
N.B. If there are any unfinalised pay runs for the employee, you will not be able to terminate until those pay runs have been finalised.
Cancelling a termination
If you want to cancel the termination in a pay run, click on the "Actions" box within the employee's pay details and then click on 'Cancel Termination':
If you want to re-activate an employee, you can do this by going to the employee's file 'Details' section. At the bottom of the page, you will see a 'Re-Activate Employee' button. Clicking this button will bring up a pop-up box in which you need to click 'Activate' to confirm you wish to re-activate the employee thus making them eligible for pay runs.
Termination pays & PAYG
With regard to study and training loan payments withheld on termination, as per the ATO, when working out Marginal Tax Rates you do not withhold any amount for:
- Higher Education Loan Program (HELP) debts;
- Student Start-up Loan (SSL) debts (includes ABSTUDY SSL debts);
- Trade Support Loan (TSL) debts; and/or
- Financial Supplement debts.
Note - As of 1 July 2019, amounts withheld for study and training loans (this includes HELP/SSL/TSL and Student Financial Supplement Scheme) will be amalgamated into just one amount to be withheld. This amount will be calculated using the new Study and Training Support Loans tax tables.
This will be applicable to pay runs with a Paid Date on or after 1 July 2019. In any pay runs with a paid date on or before 30 June 2019 the HELP & SFSS amounts will still be withheld. See here for further information.