Termination Payment

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Contributing Cover User Whittos
8 Posts
Contributing Cover User
Australia
Contributing Cover User

8Posts

5Kudos

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Termination Payment

Good Morning

 

I am having difficulty in how to process a termination of an employee. I have processed his normal working hours separately, and I now need to pay out his annual leave (no leave loading). Can someone point me in the right direction how to do this - and what tax rate should be? Thank you.

1 REPLY 1
Former Staff Tallie_M
4,461 Posts
Former Staff
Australia
Former Staff

4,461Posts

302Kudos

0Solutions

Re: Termination Payment

Hi there @Whittos,

 

Paying out unused leave is simply a matter of processing a pay run for the employee being terminated, ensuring that the number of hours worked is sitting at 0, and that their available AL balance is entered into the annual leave field.

 

Once done, simply go ahead and process the pay as per usual.

 

Our help page on Managing your employees' leave contains further information regarding this (see the 'Make a termination payment' section).

 

Regarding the tax rate, the ATO's page Tax table for unused leave payments on termination of employment should be able to assist you further.

 

Please don't hesitate to post again anytime you require.

Warm Regards,

Tallie

MYOB Client Support
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