Final pay on resignation

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Final pay on resignation

Hi there,

 

I have an employee who resigned in the middle of the month. I will run a final pay including 12 days normal pay plus unused AL payout. Would you please advice how to process it? any different compared to normal monthly pay run?

1. before create a pay run, any change in the employee setting? when can I update the termination date in the file?

2. Payrun: can I do final pay for normal and unused AL in one time or one-by-one?

3. Pay items: 

- 12 days normal pay: manual enter working hours when processing it. System will show 9.5% super on it.

- unused AL payout: is it for "Unused Annual Leave" pay item? Will the system automatically generate the AL closing balance on the final day?

3. Generate bank file and STP will be the same as the normal monthly pay process?

 

Many thanks

MXU

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MYOB Moderator
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Re: Final pay on resignation

Hello @MXU 

 

Please click on the link to find full instructions on Processing a final pay in Essentials, and follow this link for full instructions on Terminating an employee using STP. Please read both articles carefully and follow the steps as outlined. You should find answers to all of your questions within those articles, however, here are the specifc answers to your queries:

 

1. before create a pay run, any change in the employee setting? when can I update the termination date in the file? To deactivate an employee in Essentials, go to Payroll > Employees > *select employee.* Enter a Finish Date and untick the Active Employee box. Note: this is one of the last steps, so please refer to the linked Help Articles in the beginning of this post to ensure you are doing things in the correct order. In other words, you do not do this step before creating the final pay run. 

 

2. Payrun: can I do final pay for normal and unused AL in one time or one-by-one? Pay the employee their last regular pay up to the termination date in a separate pay run. Then, under Payroll >> Employee >> *select employee* >> Leave tab >> Annual Leave, change the entitlement to 0.00. This will ensure they do not accrue any leave on their termination payments. You can now pay out the unused AL via Payroll >> Enter Pay *select pay period and employee* >> Start pay run. Set normal hours to 0.00 and enter their available annual leave balance into the Annual Leave Hours field, as below:

example pay with the same amount of leave available and paid

 

3. Pay items: 12 days normal pay: manual enter working hours when processing it. System will show 9.5% super on it. I am not clear what the question is here, but as indicated above, you should make their last regular payment as a separate pay run with the appropriate dates and hours. Essentials will process the correct super figure on this pay. 

- unused AL payout: is it for "Unused Annual Leave" pay item? Will the system automatically generate the AL closing balance on the final day? Please follow the instructions outlined above for paying the Unused Annual Leave, or look directly here for full instructions in the support note. 

 

3. Generate bank file and STP will be the same as the normal monthly pay process? You would create your bank file as normal for these pays. The process in STP has a few extra steps, namely alerting the ATO and finalising the employee. Notifying the ATO lets the ATO know the employee's termination date and any ETP components in their final pay. You'll find this in the Employee Terminations tab in the Payroll Reporting Centre, as below:

Finalising the employee in STP would be the last step, however note that this can be done at the end of the financial year if you prefer. It's often recommended that this is done with other EOFY tasks in case anything needs to be amended or corrected with that employee. Please look here for full information on finalising employees in STP

 

Please do let me know how you get on and if you have any other questions.

Kind regards,
Emily

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Re: Final pay on resignation

Hello @MXU 

 

I wanted to check and see how you got on with the above instructions. Please do let me know if there is anything further I can assist with on this topic. Otherwise, if my reponse has answered your queries, please do click on 'Accept as Solution' so that others can find this information more quickly when they search.

Kind regards,
Emily

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Re: Final pay on resignation

Hi @Emily_B 

 

Thanks for the reminder. This employee has done. This employee's final payment is to create another pay run for unused annual leave payout(+ve balance). 

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