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’ll likely need to pay a termination payment for one of your employees
Click on ‘New Pay Run’.
Check and edit as required your Pay Run Period, Pay Period Ending Date, and Payment Date, and select ‘Let’s Start!’
Now that you’re on the Adjust page of the pay run, click on ‘More’.
Select ‘Termination’.
Enter the Termination date
Add in the reason for termination. The options 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.
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 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.
Once you have finished entering those details select ‘next’
On the ‘Review’ page you can review the termination earning 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.
Select ‘Save & Send Payslips’
The employees’ payslip will now show this amount.
Learn more about 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
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Learn more about useful features and functions in Payroller with our simple user guides.
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