Walkthrough video of terminating an employee
Terminating an employee
Terminate an employee from within a pay run by following these steps:
- Create the termination pay run
- Click on the name of the employee to be terminated in order to expand their details
- From the "Actions" menu for that employee, select the "Terminate Employee" option
The following article provides further information on how PAYG is calculated within termination payments:
Generate ETP payment summaries for the termination
Once the Terminate Employee action has been selected, check the "ETP/Redundancy" option that appears. Checking this box will allow you to enter the ETP amounts to be paid to the employee.
If you need to generate amended payment summaries, check the appropriate "Amended" boxes.
Once you have entered the correct values for the tax free component and total taxable amount (we've included links to the relevant pages on the ATO website at the bottom of this article to assist), click on the "Save" button and we will calculate the tax to withhold on the taxable amount as well as any Lump Sum D amounts to be reported on the employee's EOFY payment summary.
NB. We don’t currently calculate any super on ETP amounts - you’ll need to add SGC (where required) to the pay run by using the Adjust Super option from the Actions button within the employee record.
Making ETP payment summaries available to employees
When you finalise a pay run containing an ETP termination, the relevant ETP payment summaries will automatically be published and made available to the employee via the ESS portal. As a payroll administrator you can access the payment summary in one of two ways, either through the "Payment Summaries" section of the terminated employee's file, or via the ATO report for payment summaries (more information about this in the next section). If your employee does not have ESS access you'll need to download and provide their ETP payment summary to them within the timeframe laid out by the ATO.
NOTE- You can include ETP payment summaries when sending/re sending notifications to employees.
Viewing ETP payment summaries and inclusion in EMPDUPE files
Access the payment summaries report by clicking on the "Reports" option on the main navigation bar, then select "Payment Summaries" under the ATO Reports heading.
Select the correct financial year and click the "Show Payment Summaries" button to see a list of payment summaries for the selected financial year. ETP payment summaries are shown on the "Employment Termination Payment" tab.
If you have the relevant information configured for your business to generate EMPDUPE files, ETP payment summary details will automatically be included alongside the Individual Non Businss details in any EMPDUPE file created.
Refreshing ETP payment summary data
You can refresh non-transactional ETP payment summary data for things like changes to the payment signatory or the employing entity by clicking on the "refresh" link from the ETP payment summary actions list.
Useful ATO Resources
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