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Deducting unworked notice period from Termination Pay

Dmag

I have an employee that has resigned immediately without providing notice.

I am going to deduct the equal amount of hours they have worked in the final pay week as allowed under the relevant award.

Q: Is this done via a Wages Pay Category and processed as a negative (hours)? OR

Q: is this done via a Deductions Category and processed as a negative $ amount (Equivalent)

Any help that would be much appreciated.

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Accepted answers

Isaiah_C

Hi @Dmag,

If an employee resigns without giving the proper notice, you can deduct the equivalent hours from their final pay, but it's best to do this using a deductions category rather than a negative wage. That way, it's nice and clear for both payroll reporting and audit purposes.

Here's a handy help article that walks you through setting up deductions: Deductions.

Regards,

Sai

All comments

Dmag

Thank you Sai, I appreciate the reply. I had thought the Deductions was more appropriate but now i need to work out whether it is pre or post tax, I'm assuming it will be post tax.

Isaiah_C

Hi @Dmag,

Here's a handy help article that walks you through setting up deductions: Deductions.

Regards,

Sai