Summary

Termination transactions are paid using Allowance Type X. Termination.

Create a termination transaction when an employee ceases working for your company so that you can create their pay.

You can terminate an employee in a Standard or Manual pay. We recommend adding termination transactions in a Manual pay. If any problems occur with the termination pay, then you avoid delays in the Standard pay for the whole organisation.

Fields

Date terminated:

Mandatory. Date the employee will cease employment.

Reason Code:

Mandatory. Select a Reason code for the termination.

Pay LSL Entitled:

Choose whether or not pay out the employee unused Long Service Leave (See LS units available on the Employee record).

Default setting is Yes.

Days worked this period:

Read only label displaying the days worked value stored in the current pays pay header record.

Profiled Hours this period:

Read only label displaying the profiled hours value stored in the current pays pay header record.

Taxation Override

If the employee's termination pay is greater than their normal wage/salary, then add a taxation override allowance to ensure that the employee does not pay too much tax.

Result

A termination (X-type) allowance generates payments for an employee's outstanding entitlements, which may include annual leave and leave credits. PayGlobal calculates the annual leave payment to be what their entitlement will be when this pay is closed. On the Details (iii) tab of the annual leave allowance, if Include in Annual Leave has been set to Yes, a second annual leave payment is created which pays an annual leave entitlement on the initial annual leave payment.

When the pay is closed, the employee's Dates tab will be updated with the Termination date and Termination Reason.