Learn how to complete a termination payment in Payroller with our simple guide below.
At some point, you may need to make a termination payment for one of your employees.
Payroller calculates tax on unused leave and long service leave based on the gross amount of the pay run. If you're submitting a termination payment outside of a regular pay run, you may need to adjust the tax accordingly.
You won't be able to edit the tax within the pay run itself, but you can make adjustments during finalisation.
Step 1: Click on 'New Pay Run'.
Step 2: Review and edit the Pay Run Period, Pay Period Ending Date, and Payment Date as needed, then 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, 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 is entitled to annual leave loading, this percentage will be automatically applied to the total for any unused annual leave. If you need to add additional hours, you can customize this section.
If you wish to remove annual leave loading from the termination payment, ensure that you remove the leave loading from the employee's 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 on ETP Type O and Redundancy (Type R) Payments, please refer to the ATO. It’s also advisable to consult with your accountant to determine the exact amount of ETP Type O and redundancy payments you may be required to pay, if applicable.
If your employee is eligible for unused long service leave to be paid out upon termination, you can select the ‘+ Unused Long Service Leave’ button.
Please note that unused long service leave paid out upon termination does not include leave loading.
Step 7: Once you've entered all the details, select ‘Next’.
Step 8: On the Review page, review the termination earnings and tax amounts. The EOFY final will be automatically ticked to indicate this is the final pay run for the employee for this financial year.
Step 9: Select 'Save' or ‘Save & Send Payslips’.
Step 10: Submit the STP.
The employee's payslip will now reflect this amount.
Learn more about our useful features and functions in Payroller with our other handy guides:
Discover more tutorials for using Payroller
Learn more about useful features and functions in Payroller with our simple user guides.
Try Payroller for free and get started setting up employees for STP and payroll.
With a subscription to Payroller, you can access full features across both web app and mobile app. Learn more with our Subscription FAQs