The termination of the employment of any payee that is included in a pay batch can be enacted at the Termination stage of processing a normal or adjustment pay batch.
Terminating a payee involves the following:
specifying the termination date and termination reason
selecting the payment type (Lump Sum A, Lump Sum B, gross) under which unused leave is to be paid out
selecting the termination type that applies to any leave accrual payout that is to be paid as a Lump Sum A payment
specifying the tax to be withheld from any leave accrual payout that is to be paid as a Lump Sum B payment
adding Lump Sum D payments, if applicable.
For more information about Lump Sum A, Lump Sub B and Lump Sum D payments, see Terminating a Payee's Employment.
Once a payee's employment is terminated in a pay batch and the pay batch is closed, the termination cannot be undone. That is you cannot undo the termination or adjust the amounts that were paid at the Termination stage in a future pay batch. Therefore, it is important to make sure that:
you terminate the correct payee
the amounts you pay to the payee at the Termination pay batch stage are correct.
To terminate a payee’s employment, follow the procedure below.
How to Specify the Termination Date & Reason | ||
On the Pay Wizard – Termination screen, click the View button next to the relevant payee. The Payee Pay Details screen opens, with the Termination section expanded. |  | |
2. | In the Termination Date field, select the date on which the payee’s employment is ceasing. The termination date must fall within the pay period to which the pay batch corresponds and cannot be prior to the end date of any job order to which the payee is assigned. If the payee is to be terminated and is currently assigned to a job order, the payee must be removed from the job order first. | |
3. | Click Terminate Payee. The Termination Reason field is enabled and leave type table is populated with leave types for which the payee is eligible for a payout on termination of employment. | |
4. | In the Termination Reason field, select the reason that best describes why the payee’s employment is being terminated. | |
At this point, if the payee has any used leave that must be paid out at termination, the name of the leave type, quantity of the leave to be paid out, rate of payment and total amount to be paid out are listed on the screen. You must select the relevant payment type (Lump Sum A, Lump Sum B, gross) for each leave type that is listed. To do this, follow the procedure below.
How to Select the Payment Type for Leave Payouts | |
Click in the Payment Type column next the first leave type that is listed and choose whether the leave is to be paid out as a Lump Sum A, Lump Sum B or gross income payment. | |
2. | Repeat step 1 for each leave type that is listed. The Lump Sum A, Lump Sum B and Gross totals below the list of leave types update to reflect the total amount that will be paid for each respective payment type. |
If you have selected Lump Sum A or Lump Sum B as the payment type for any of the listed leave types, you will need to select the relevant Lump Sum A termination type and specify the amount of tax to be withheld from the Lump Sum B payment. To do this, follow the procedure below:
How to Select the Lump Sum A Termination Type & Specify the Lump Sum B Tax Amount | |
In the Termination Type field, select the code that identifies the type of termination that applies to the Lump Sum A payment. Skip this step if no leave types are to be paid out as Lump Sum A payments and therefore the Lump Sum A total is 0.00. | |
2. | In the Tax field against the Lump Sum B Total, key in the amount of tax that is to be withheld from the Lump Sum B total. Skip this step if no leave types are to be paid out as Lump Sum B payments and therefore the Lump Sum B total is 0.00. |
If the payee is entitled to receive any Lump Sum D payments, follow the procedure below to add the relevant payments. Skip this procedure if the payee is not entitled to any Lump Sum D payments.
How to Add Lump Sum D Payments to the Termination | |
At the top of the Employment Termination Payment table, click Add +. Fields are displayed to allow the ETP code, non-taxable and taxable components of the payment to be specified. | |
2. | In the ETP Code field, select the employment termination code that applies to the Lump Sum D payment. The ETP code is mandatory but will apply to the taxable component of the payment (ETP) only. |
3. | In the Lump Sum D Non-Taxable Amount field, key in the non-taxable component of the Lump Sum D payment, if applicable, and select the pay code against which the payment will be paid. Skip this step if there if the entire payment is taxable. |
4. | In the ETP Taxable Amount field, key in the taxable component of the termination payment, if applicable, and select the pay code against which the payment will be paid. Skip this step if the entire payment is tax free and proceed directly to step 8. |
5. | In the Tax Type field, select the tax category that applies to the taxable component of the termination payment and key in the amount of tax payable on the taxable component of the lump sum payment. |
6. | Select the pay code against which the taxable component of the payment will be paid. |
7. | In the ETP Non-Taxable Amount field, key in the component of the termination payment that would otherwise be taxable but relates to a period of employment pre-July 1983 or relates to invalidity. If this is not applicable, skip this step and proceed directly to step 9. |
8. | Select the pay code against which the ETP non-taxable amount will be paid. |
9. | Repeat steps 1-6 as many times as required if the payee is eligible to receive multiple Lump Sum D payments. |
Once all of the relevant procedure above have been completed, save the termination information you have specified by clicking the Save at the top of the Termination section of the Payee Pay Details screen.
Once you have saved your changes, you can close the Payee Pay Details screen by clicking Exit.