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How to Make a Employee inactive when they leave and Process their final Pay

The purpose of this guide is to explain how process an employees final pay out a employee and add annual leave owing to them.

This process is broken up into  Parts-  Working out what is owed to the Employee & Entering their Termination Date & Processing their Final Pay.

Note:  It is easiest to follow this process once they have finished working their normal hours and you can process a payout separate to the rest of you Employees Payruns. 

 

1. Finding out what is Owed to the Employee and Entering their Termination Date

 

  • Go to Payroll - Employee - Search and select the Employee
  • In the Details Tab - Enter their Termination Date
  • Also take note of;
    • Hourly Rate
    • Hours Per Week / Days Per Week = Divide the Hours Per Week by the Days per week to work this out as a Daily amount. 

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  • Go to the Standard Wages Tab - Click 'Calculate

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  • This will show you their totals up to date. Take note of their;
    • PAYG Amount  = this amount will have to be edited based on the ATO amounts and added/subtracted for the total amount you need to pay. 
    • Holidays Owing = This is the amount you will have to Pay them so will have to be times by their Salary Amount per day and any leave loading amounts also added. 
  • If there are any additional amounts you need to have kept track of, you can go to the Queries Tab and run any further info queries as necessary

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 2. Calculating the Amounts to Enter and Processing the Payroll

  • Normal PAYG – S361
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  •  Payment Amount  ( this is the amount for the amount of annual leave days owing) divide by 52 $4141.36/52 = $79.64
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  • $79 cents ( take off cents)
  • Add to normal wage $1538 + $79 = $1617.00
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  • Tax on $1617 ( Look at the tax tables through the ATO) = $392.00
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  • Subtract Normal PAYG $392.00 - $361 - $31.00
  • Multiply by 52 $31.00 x 52 = $1612.00

 

  • Go to Payroll - Process Payroll - Enter the Payrun Details
  • Check with you accountant as whether your calculations are correct and if a Lump Sum? has to be selected 
  • Remove all Employees except the Employee which is leaving. 
  • Enter in the Values as calculated

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