Termination Pay

This window is used to calculate leave payments for an employee's final pay, which can then be passed to the payroll to be included in the next run, or to be paid as a pre-payment, or can be used as a reference and the details not passed to the payroll.

Prerequisites

Rules and Guidelines

  • This option does not calculate leave accrual from the employee's start date but uses the balances defined in the Unused Leave Balances for each accrual type.

Select Start Wizard.

Field Information

This section allows for the selection criteria to be entered.

The ID Number of the employee that the calculation of Termination Pay is to be performed on.

The date the employee is leaving the company.

The Reason Code for the termination.

Is this a bona fide redundancy?

  • The calculation of tax is influenced by the choice made in this field.

 

Details To Review

Is the Leave Type of Annual, Long Service and/or Sick to be included in the calculation?

Are the nominated calculations to be passed to the payroll system to be include in the next payrun?

If Y was nominated in the Pass to Payroll field, how is this to be passed to the payroll as?

N Normal. Post as Normal (this will be processed as a separate pay separator)
P Prepayment. Post as Prepayment

 

Select Next >> to calculate the leave balances and for the window to display the first Leave Type nominated.

Each Review window displays the current accruals the leave type selected.

  • Preceda uses the values on the employee's Leave Entitlement window, for the relevant leave types, checks the Accrued to Date, if the accrued to date is less than the termination date entered, it calculates the rest of the entitlement due, up to the termination date. If the accrued to date is greater than the termination date entered, Preceda takes the values as they are.
  • It then checks the Unused Leave Balances and allocates these values into the correct components, Pre 78, 78-93, 93-96 and 96. If not using Unused Leave balances, the results are allocated to the 96 component.
  • The Hours Owing and the Base Pay Rate that are displayed can be over ridden.
  • A Loading percentage can also be entered for any part of the leave accrual if necessary.
  • Once satisfied with the figures, enter the correct Allowance/Deduction code for each portion of the leave to have included in the final calculation. Any value that does not have a code entered is not included. Make sure this code is valid for the leave type and the type of termination payment being made.
  • The Allowance/Deduction codes are used to specify the taxation to be applied to the various Leave Types and Termination Payments.
  • Any values to be paid out must have an Allowance/Deduction codes allocated before proceeding to the following window.

 

Select Next >> to move to Terminate Pay Enquiry window

The window performs and displays the calculation of the Leave Payment owing for this termination pay. Details information can be obtained by drilling down on the entry.

Select Finish