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pandasaigon's avatar
pandasaigon
Trusted Cover User
5 years ago

TERMINATION PAYMENT PROBLEM

Hi, We  use MYOB AccountRightplus One of our staff resigned. We now need to pay his unused annual leave, RDO, and some sick leave which is he now claiming for.   According to the last payroll we...
Tracey_H's avatar
Tracey_H
Former Staff
5 years ago

Hi pandasaigon 

 

To determine the outstanding entitlements we do recommend running the Entitlement Balance Detail report. You will then need to create the payroll categories for the unused leave payments. As mentioned by katherineAFD you do need to make sure those categories are excluded from the entitlement accrual calculation or they will accrue leave on the leave paid out.

 

You should also check if the termination payment is an ETP (Employment Termination Payment) according to the ATO. This link will help with that: What is an ETP?

 

I would recommend following the steps in these help articles to ensure the termination pay is processed correctly:

Processing a final pay

Determine any outstanding entitlements

Create payroll categories for termination payments

Exclude termination payroll categories from super calculations

Record the final termination pay

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • pandasaigon's avatar
    pandasaigon
    Trusted Cover User
    5 years ago

    Hi,

    Thanks for sending the links below.

    I found the answer is the standard pay for normal last wages had to be done separately from final pay.

    My problem was I tried to combine all into one pay so the system was confused and mixed up all the entitlement balance. But once you do separately, it works well. No, it may have to do 2 -3 payslip until the final balance of entitlement comes to zero.

    Thanks

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