Manual Terminations

Employee has not been on a pay run in current Tax Year

If an employee has not been included on a pay run in the current tax year, or was created in Marlin HR but has never been included on a payrun, you will not want to perform a Termination Payrun as this would report his details to the ATO via STP (Single Touch Payroll) reporting for the current tax year.

In this situation, you will be able to manually change the employee's Status in Employee Maintenance to Terminated as shown below.

Click on the OK button on the warning prompt to permanently change the employee's Status to Terminated.

The employee's Terminated Date will be automatically set to their Paid To Date.

Employee has been on a pay run in current Tax Year

If the employee has been included on a pay run in the current tax year, you will not be able to manually set his Status to Terminated. Trying to do so will display the following warning.

This is because you must report details of the employee's payments, tax withheld and termination to the ATO via STP (Single Touch Payroll) reporting for the current tax year and must flag the details as "Final" so that they will be available in myGov for the employee to include in their online tax return after 30 June.

To do this, you must process a Termination Pay Run for the employee, even if there are no outstanding payments to be made.

Whether or not you pay out any leave balances to the employee, the Termination Payrun will clear these balances so that they do not overstate the unused leave liability shown on your balance sheet (if you accrue unused leave to the GL) and will automatically report all of the required information to the ATO and flag it as "Final".