Learn how to complete a termination payment in Payroller with our simple guide below.
At some point, you'll likely need to pay a termination payment for one of your employees.
Payroller calculates tax on unused leave/long service leave by taking the gross of that pay run as the normal gross to be used in the tax calculations. If you are submitting a termination payment outside of a normal pay run you may need to edit this tax.
You will not be able to edit this tax on the pay run but you can edit this on finalisation.
Step 1: Click on 'New Pay Run'.
Step 2: Check and edit as required your Pay Run Period, Pay Period Ending Date, and Payment Date, and select ‘Let’s Start!’.
Step 3: Click on 'More' on the employee you are terminating.
Step 4: Select 'Termination'.
Step 5: Enter the Termination Date, the Reason for termination, and any ETP payments.
The options for reasons for termination are:
voluntary,
ill health,
deceased,
redundancy,
dismissal,
contract ended,
or transfer.
If your employee has annual leave loading, this percentage will automatically be added to the total for any unused annual leave amount. If you need to add any additional hours you can customise this section.
If you would like to remove annual leave loading from the termination payment make sure to remove the leave loading from your employee card in the people section under employment before proceeding.
Step 6: If you need to pay a redundancy (Type ‘R’) payment or an ETP Type ‘O’ payment, enter this in the sections provided.
For more information regarding what an ETP Type O Payment and Redundancy (Type R) Payment is refer to the ATO. It is also worth speaking to your accountant to calculate just how much ETP Type O and redundancy Payment you are required to pay (if there is any at all).
If your employee is eligible for their unused long service leave to be paid out on termination you can also select the ‘+Unused long service leave’ button.
Please note that unused long service leave paid out on termination does not have leave loading calculated onto it.
Step 7: Once you have finished entering those details select ‘Next’.
Step 8: On the Review page you can review the termination earnings and tax amount. The EOFY final will also be automatically ticked to indicate this is the final pay run for this employee for this financial year.
Step 9: Select ‘Save & Send Payslips’.
The employees' payslip will now show this amount.
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