Summary

An employee is finishing work and has some termination payments owing. The employee's final period’s salary or wages will be paid in a standard pay, and their original termination payments will be paid in a manual pay.

Pre-conditions

ETP settings and rates are present for current tax year. See ETP Settings.

Termination allowances are set up in Company Settings.

Termination types are set up in Organisation | Common Reasons | Termination Reasons.

Employee is not included in any other open pays.

Process

1. Determine whether the payments being made on employment termination are ETPs.

   If none of the termination payments are ETPs, then you do not need to add an Employee Termination record.

   If some of the termination payments are ETPs, then you will:

   • Include the ETP payments in an ETP (Employee Termination record).
   • Include the other payments in the employee’s final pay.
2. Check that the employee's final standard pay:
   • Contains transactions for their final pay, such as salary or wages, and payments that are not defined as ETP.
   • Has been fully processed and closed.
3. Add a termination transaction and link the ETP to the manual pay.
4. Process the manual pay.
5. Close the manual pay.

   PayGlobal updates:

   • The employee’s record with their termination date
   • The employee’s termination record with the manual pay sequence, and changes its status to "Closed".
6. Run payslips and make payments.

   Note: Employers are no longer required to give an employee an ETP Payment Summary (even if the employee requests one). Employees can get this data from the ATO via their MyGov account as soon as their ETP payments have been reported to the ATO.

Related topics

Termination Process (Aus)

Transaction Entry - Termination (Aus)