Terminated Employee

Contributing Cover User AMF-Cat
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Contributing Cover User
New Zealand
AMF-Cat
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Terminated Employee

Hi there,

 

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.

 

Thanks,

3 REPLIES
MYOB Moderator Steven_M
21,106 Posts
MYOB Moderator
New Zealand
Steven_M
MYOB Moderator

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Re: Terminated Employee

Hi @AMF-Cat

 

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.

 


Kind Regards,
Steven
MYOB Client Support
Contributing Cover User AMF-Cat
7 Posts
Contributing Cover User
New Zealand
AMF-Cat
Contributing Cover User

7Posts

1Kudos

0Solutions

Re: Terminated Employee

Thanks Steven,

 

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?

 

Kind regards,

 

Cathy

 

 

Ultimate Partner jenniek
2,125 Posts
Ultimate Partner
New Zealand
jenniek
Ultimate Partner

2125Posts

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Accepted Solution Solved Solution

Re: Terminated Employee

Hi @AMF-Cat

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.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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