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Create Final Pay (Australia)
Click the Create Final Pay button to enable the entry of final pay details, and any employment termination payment (ETP) details and selection on what to do with unused leave. If batching is turned on, a batch number will be required to be entered.
In the Payout Unused Leave section, if the payment is for a Normal termination, then the Normal Gross Earnings is based on an accumulator and an option in Module Control.
Select the tax scale that the employee is usually taxed at. This defaults from the employees default tax line. If the payment is for a special termination, select the Special option.
If an ETP payment is required, select the ETP section and enter the amounts and select the ETP code that is applicable. ETP amounts are not calculated and will must be calculated and entered.
An ETP payment summary is only required if the employee has a taxable component. If ETP comprises only a Tax Free component, then an ETP Payment Summary is not required and the ETP option should be deselected.
The tax free component of the ETP should be included in the Lump Sum D on the Payment Summary configuration.
If the employee was employed before 18th August 1993 and has a Normal termination, the tax on unused annual leave and long service leave will not be calculated, these figures must be calculated and added. If the employee was employed before 16th August 1978, the tax on unused Long Service Leave will not be calculated, these figures must be calculated and added.
The final pay should include items that the employer will be paid in the final pay packet. This may include extra hours or days worked between last pay date and termination date, allowances or bonuses.
You must enter the number of tax periods before clicking the OK button.
Once all the details of have been entered, click OK and a pay entry form containing the details displays.
After you make any changes and save the pay, you will be returned to the terminate employee form. Click the Calculate Accruals button. The balance against the normal balance tracked transaction type will be transferred to the payout transaction type (via a Balance Adjustment) as established in the Balances tab of the pay transaction type. Payout balances will then be added to the final pay created in the first step.
Click the View Final Pay button to review he final pay, with the payout balances, Once satisfied with the final pay, create the payment.
Once paid, click the Terminate Employee button. This updates the employee with a termination date, flag them as inactive for payroll and set their status as inactive.
Where an Eligible Termination Payment is entered, the Print ETP Summary button is enabled and you can print the ETP Summary. If required, you can also print a separation certificate.
If the employee:
- Was terminated incorrectly, click the Un-Terminate Employee button. The final pay are deleted and any balance adjustments that were made as part of the termination are deleted.
- Is re-employed, you must add them as a new employee.