Use the Terminate Employee form to terminate and create a final pay for an employee. You can select the employee and view their details and also set the reason for termination, what their status should change to, and their termination date. The termination date is used for leave calculations.
Clicking the Process buttons open new forms or run a process. Click the Create Final Pay button to open the Create Final Pay form.
Clicking the Payout Balances button also recalculates tax on leave (in Australia). If you change the leave payout, you must click this button again to ensure the tax is correct. The payout balances calculate annual leave paid on termination for the 8% calculation for New Zealand as well. You should thoroughly check all calculations, leave accruals, and payouts.
When an employee has unused annual holidays, a message displays when you terminate that employee. You must check the period covered by the entitled leave to ensure there are no public holidays within that period. If you need more information, click the link in the message, which takes you to the Payment for leave and holidays in final pay page on the MBIE website.
Each option and field on the form is described below. Mandatory options and fields are highlighted in red.
Code
Enter or select the code of the employee to terminate.
Surname
Enter or select the surname of the employee to terminate.
First Name
Enter or select the first name of the employee to terminate.
View
This field determines which records you have access to. The default view is set on the Module Control form. You can modify your view (depending on your security level)
Start Date
This is a display-only field showing the employee's start date.
Date of Birth
This is a display-only field showing the employee's date of birth entered on the employee form.
Age
This is a display-only field showing the employee's age using the date of birth entered and today's date. This field updates when you enter the Termination Date.
Years Service
This is a display-only field showing the employee's years of service based on their start date. This field updates when you enter the Termination Date.
Reason
Select the reason for the termination from the dropdown list.
Change status to
Select from the status that the employee is set to once terminated from the dropdown list.
Termination Date
Enter or select the date to terminate the employee on. This date calculates the date to pay until for the final pay and the date to use to calculate the final accruals.
Comments
Enter comments about this termination.
Outstanding
This field displays the outstanding amounts for the employee of any AR offset lines, reducing payments, and reducing deductions.
Any AR offsets and reducing deductions are taken from the final pay. If the final pay does not fully cover these amounts, the differences are highlighted in this box.
Create/View Final Pay
Click this button to open the Create Final Pay form. If the periods can be set, you can select standard pay lines and enter ETP amounts.
Once the final pay is created, click this button to view the final pay and make any changes required.
Calculate Accruals
Click this button to process the accruals for the employee up to their termination date.
Payout Balances
Click this button to add the balance of all the leave types for the employee to the final pay. Click this button again to recalculate tax on paid out leave lines.
View AL Payout Details
Click this button to see how the annual leave payout is calculated. This information is also attached to the employee and you can add it to reports.
Note: This option only applies to companies in New Zealand.
Terminate Employee
Click this button to terminate the employee. This sets the employee to the status you selected from the Change status to list.
If you're terminating an employee in New Zealand and that employee has outstanding pay for working public holidays, a warning message displays. You can click the link on the message to learn more. If necessary, you must add the pay for the public holidays to the employee's pay.
Print Separation Certificate
Click this button to link to the Centrelink website to print a separation certificate.
Note: This option only applies to companies in Australia.
Print ETP Summary
Click this button to run the ETP Payment Summary report for the terminated employee.
Note: This option only applies to companies in Australia.
Un-Terminate Employee
Click this button to reverse the termination of the employee. You're prompted to select a new status and Greentree Desktop deletes the final pay as long as it hasn't been paid.
Clicking this button also deletes balance adjustments that were created as part of the termination.