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We have to termiate an employee and I am not sure what is right step I should take.
The employee went overseas, our former accountant kept paying him as annual leave even he did not have any annual leave left. Now he is owing company and he is not returning back to work.
We are using MYOB Payroll.
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Firstly, I would recommend speaking to Department of Labour/Employment lawyer or someone similar in regards to where you stand with that employee and whether you can look at attempting to recoup that money from them.
From a MYOB Payroll point of view, I would be doing a final pay for the employee using the Final Pay option in the Prepare Pays window. This will go through terminate the employee. New Zealand Payroll Support Note: Preparing a final pay would be able to assist with that process.
Do let us know how you get on and if you require further assistance.
Should I do the final pay or remove him without fianl pay? If I do the final pay, the annual leave is negative hours, kiwiSaver and direct credit are all negative dollars. Will it affect our PAYE report and journal to MYOB AccountRight?
This definately requires advice from an employment expert. Because you have paid the employee - I would be processing the final pay to stop any further entitlements acruing - and stop paying him. Make an adjustment for the negative pay amount off against an allowance code - so that the net pay comes back to NIL. Depending on your employment contract - it is unlikely that you will be able to recover the overpayment from the employee unless he voluntarily gives it back. This is where you need more expert advice.