Integrations

Termination Payment

Here we explain how to complete a termination payment

At some point, you'll likely need to pay a termination payment for one of your employees.

We're going to go over how you can add a genuine redundancy payment and a normal termination (both mutual and dismissal).

Firstly, redundancy payments are included when running payroll.

To do this, make sure you're in Run Payroll and click on 'New Pay Run'.

Select the relevant pay period end date and the payment date. Click 'Let's Start'.

Now that you're in the Adjust page of the pay run, click on 'More'.

Select 'Termination'.

Select either normal termination or genuine redundancy.

For a normal termination, add the unused annual leave and any ETP Type O Payment.

For more information regarding what an ETP Type O Payment is refer to the ATO. It is also worth speaking to your accountant to calculate just how much ETP Type O Payment you are required to pay (if there is any at all).

For a genuine redundancy, add in the annual leave and the Redundancy (Type R payment) owed. You can also include ETP Type O payment here if required.

For more information regarding what Redundancy (Type R) Payment is refer to the ATO. It is also worth speaking to your accountant to calculate just how much Redundancy Payment you are required to pay (if there is any at all).