Learn how to complete a termination payment in Payroller
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.
To ensure proper processing, you should run the termination in the final pay run with the ordinary hours worked, so that the tax is calculated correctly.
You wonโt be able to edit the tax within the pay run itself, but you can make adjustments during finalisation.
Step 1: Click on โNew Pay Runโ.
Step 2: Review and edit the Pay Run Period, Pay Period Ending Date, and Payment Date as needed, then select โLetโs Start!โ.
Step 3: Click the three-dot menu next to the employee you wish to terminate.
Step 4: Select โTerminationโ.
Step 5: Enter the Termination Date, Reason for Termination, and any ETP payments.
The options for reasons for termination are:
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voluntary,
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ill health,
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deceased,
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redundancy,
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dismissal,
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contract ended,
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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 employeeโs card in the People section under Employment before proceeding.
Step 6: If you need to pay a redundancy (Type โRโ) payment or an ETP Type โOโ payment, enter this in the sections provided.
For more information on ETP Type O and Redundancy (Type R) Payments, please refer to the ATO. Itโs 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 the employee is eligible for a payout of unused long service leave upon termination, click โ+ Pay Itemโ and then select โ+ Unused Long Service Leaveโ.
Please note that unused long service leave paid out upon termination does not include leave loading.
Step 7: Once youโve entered all the details, select โReviewโ.
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 โSaveโ or โSave & Send Payslipsโ.
Step 10: Submit the STP.
The employeeโs payslip will now reflect this amount.
Learn more about our useful features and functions in Payroller with our other handy guides:
Setting up 2FA on a new mobile phone device
Make an online tax file number (TFN) declaration
Finalise reporting for the financial year
Set employees up on different pay periods
Approve leave requests made by employees in the Payroller Employee mobile app
Discover more tutorials for using Payroller
Learn more about useful features and functions in Payroller with our simple user guides.
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