When running the Payroll, the Termination Wizard will appear when one or more employees have been marked for termination (falling due in that payroll).

Select the employee's name and then Edit Details to begin.

If the Administrator wishes to defer the termination procedure until the next payroll, check the Postpone This Termination Until Next Payroll field.

If the Administrator wishes to proceed with immediate termination, select the Next button.

The Administrator can choose either a normal termination or a termination based on redundancy, invalidity, or approved early retirement.

Termination 1:  Reason for Termination

The ClockOn Payroll Wizard may be used to terminate employees under either “normal” or “redundancy/retirement” conditions. For advice on the correct choice, consult with your industrial relations advisor or accountant:

Termination 2:  Payout of Statutory Annual Leave and Additional Annual Leave

The Administrator can choose to pay out statutory annual leave and additional annual leave owing. The Administrator will need to know if statutory annual leave or additional annual leave owing is pre 18 August 1993 or Post 17 August 1993. All leave owing will appear (by default) in the Post 17 August 1993 category. If the Administrator places any hours in the Pre 18 August 1993 category, these hours will automatically be deducted from the Post 17 August 1993 Hours category:

Termination 3:  Payout of Special Annual Leave and Leave Loading

The Administrator can choose to pay out Special Annual Leave owing. The Administrator will need to know if special annual leave owing is pre 18 August 1993 or post 17 August 1993. All leave owing will appear (by default) in the Post 17 August 1993 category. If the Administrator assigns any hours to the Pre 18 August 1993 category, these hours will automatically be deducted from the Post 17 August 1993 hours category. The Administrator can also select Payout Loading on Annual Leave Owing. There is an additional category for a tax free amount. Usually, the first $320 is a tax free amount:

 

Termination 4:  Payout of Personal Leave, Time-in-Lieu & RDO Leave

The Administrator can choose to pay out personal leave, time in lieu and RDO leave owing. Check the buttons provided to pay out any of these forms of leave. If paying out time in lieu owing, note that some federal and state awards require the employee to be paid out at the original overtime rate:

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Termination 5:  Payout of Long Service Leave

The Administrator can choose to pay out long service leave owing. This screen provides the employee's Start Date and Termination Date and the completed years of service. As with Annual Leave, all Long Service Leave owing will appear by default in the Post 17 August 1993 field. For long-term employees the Administrator can, however, enter amounts for pre 16 August 1978 and 16 Aug 1978 - 17 August 1993, separately. Amounts entered into these categories will be automatically deducted from the Post 17 August 1993 field.

Calculating Long service leave

If the ruleset that the employee is attached to designates that Long service leave is to be stored in weeks, the calculation for long service leave (LSL) utilises the hours from the employee's working week tab(in the employee details) x number of weeks LSL accrued. Prior to the termination being done, the working week hours can be changed to reflect the employee's average hours weekly if necessary.

Termination 6:  Calculation of Tax on Termination Payout

This step provides the Administrator with the calculation of tax on termination payout. The Administrator has the flexibility to change two fields on the screen:

The field Total Tax Payable can be adjusted. Under Marginal Tax Calculation, the yearly amount for estimated salary or wage can also be adjusted. This field represents the salary/wage earned YTD which can be found in Employee Setup, Pay tab, YTD button.

Termination 7:  Employment Termination Payments

If the employee is eligible for an employment Termination Payment (ETP), this step displays the field where this payment can be entered:

Termination Complete

This screen allows the Administrator to Preview or Print all Termination information, so the calculation can be verified externally before being finalised.  When completed, select the Finish button to terminate the employee.