Marlin HR enables flexible handling of casual terminations.
Termination pay runs are not required for casual employees:
- If a casual employee has worked at all during a tax year, the EOFY close-off will automatically mark their amounts as Final to the ATO.
- If they do not work at all during the next financial year, they simply will not be included in EOFY reporting.
To avoid clutter, you can keep casuals as Inactive, which keeps them in the system for future work.
If a casual will never be rehired: They can be terminated immediately using a termination pay run, in order to remove them from the Employee Maintenance list and report their Final to the ATO, if desired. However, this would all be automatically handled later by the EOFY close-off.
For expert guidance, please consult the ATO, Fair Work Ombudsman, your employer association or a qualified tax accountant about:
- Employee payments (types and amounts)
- Tax withholding requirements
- STP codes for ATO submissions
Quick Reference
Deactivating Casuals
If you are unsure whether a casual employee will work for you again:
- Set the Status dropdown in their Employee Maintenance to Inactive
This will prevent them from being selected on any further pay runs.
If they do not work for you again during the current financial year:
- The end of year close-off process will report their year-to-date amounts as Final
- Their status can be left as Inactive
Reactivating Casuals
If you re-employ a deactivated casual:
- Set their Status to Returned in Employee Maintenance
- Enter the Returned Date in the field that appears below
The status can be changed to Inactive again, if necessary.
Terminating Casuals
Since the EOFY close-off process automatically finalises casual terminations, manual termination is not required unless you want to remove them from the Employee Maintenance list for administrative clarity.
If a the terminated employee is rehired, you will need to re-add them as a new employee.
Alternatively, keeping them as Inactive removes them form the pay run list while allowing for future rehire.
Current Earnings
If you know a casual employee with outstanding earnings or have been on a pay run this financial year, will never work for you again, and you want to remove them from the Employee Maintenance list:
- Process a termination pay run for them, even if there are no amounts to be paid ($0).
- This will immediately report the termination reason and termination date to the ATO, as well as flag the submitted amounts as Final.
If you do employ a terminated casual employee again you will need to re-enter them as a new employee.
No Current Earnings
If you know a casual employee with no earnings for the current financial year will not work for you again, and you want to remove them from the Employee Maintenance list:
- Change their Status in Employee Maintenance to Terminated
- Their Termination Date will be automatically set to the Paid To Date, as shown in Employee Maintenance.
The employee will be instantly removed from the current employee list, whereas employees with a Termination Date within the current financial year will remain on the employee list until you process the end of year close-off.
Do not process a termination pay run for inactive casuals: This would unnecessarily report their information to the ATO with no amounts, when you may not have employed them for several years
HR will only allow you to set an employee's status to Terminated if employee has not been included on a pay run for the current financial year and has no outstanding leave balances.
If there are remaining leave balances that the employee is not entitled to:
- Clear them using a leave balance adjustment, before changing their status
- If your leave types are set to accrue in your general ledger, this will also correct the unused leave liability in your balance sheet