Termination Pay Corrections

A termination pay will change an employee's status to 'Terminated' and will remove their accrued leave balances from Marlin HR and from the Provision For Leave accounts in the General Ledger (whether these balances were paid out or not).

Terminated employees cannot be included on another Normal Pay Run.

However, you can include them on another Termination Pay Run. You may need to do this for several reasons:

• You processed a "Standard" or "Redundancy" Termination Pay to pay the standard termination payments (e.g. unused Annual Leave or Long Service Leave, outstanding earnings and allowances, redundancy payments) and now need to process an "ETP" Termination Pay Run to process an ETP payment (e.g. for Payment In Lieu Of Notice, Golden Handshake);
• You need to make a payment that was inadvertently left off the original termination pay run (e.g. some Standard or Overtime hours, Unused Leave Hours or Leave Loading);
• You need to correct or remove a figure that was wrong on the original termination pay run.

Termination Pay Runs allow you to specify 'Add' or 'Reduce' for each amount entered (like on an Adjustment Pay Run) thus enabling you to add new payments or to effectively increase, reduce or remove amounts entered on a previous Termination Pay Run.

How to select a terminated employee on another Termination Pay

To select the terminated employee on another Termination Pay Run, select 'Termination Pay' as the Pay Type.

Tick the 'Show Inactive and Terminated Employees' checkbox (beneath the employee list).

The terminated employee will now appear in the employee list.

Click on the Options button to select their termination payout options and include them on the Termination Pay Run.

I left a payment off the original Termination Pay

Select the employee on another Termination Pay (see above).

On the Termination Options window select:

• "ETP" if the missing payment is an ETP payment,
• "Redundancy" if not an ETP payment and the termination was due to a genuine redundancy,
• "Standard" if not an ETP payment and the termination was not due to a genuine redundancy.

Enter the Termination Date (the same date as on the original termination pay run) and Initialise the Termination Pay Run).

Double-click on the employee to view the payment details.

Add the missing items or corrections, adjust the tax if necessary and finalise the termination pay run as normal.

Provide the employee with a Pay Advice for the original termination pay and one for the additional termination pay.

I entered an incorrect amount on the original Termination Pay

Select the employee on another Termination Pay (see above).

On the Termination Options window select the same Termination Payment type as on the original termination pay run (i.e. Standard, Redundancy or ETP).

Enter the Termination Date (the same date as on the original termination pay run) and Initialise the Termination Pay Run.

Double-click on the employee to view the payment details.

Add the same item (that had the incorrect amount on the original termination pay run).

Enter the amount by which you need to increase or decrease the amount entered on the original termination pay run.

Tick "Add Hours" or "Reduce Hours" (or "Add Amount" or "Reduce Amount") as appropriate then click on the OK button.

Adjust the tax if necessary and finalise the termination pay run as normal.

Provide the employee with a Pay Advice for the original termination pay and one for the additional termination pay.

I forgot to pay out leave on a Termination Pay

The original termination pay run will have cleared the leave balances from the employee and from the Provision For Leave accounts in the General Ledger.

The leave balances to be paid out will need to be re-added to the employee before running the corrective termination pay run.

Use a Leave Balance Adjustment to re-add the employee's accrued leave balance for each leave type that is to be paid out.

Select the employee on another Termination Pay (see above).

On the Termination Options window select:

• "Redundancy" if the termination was due to a genuine redundancy.
• "Standard" if the termination was not due to a genuine redundancy.

Tick the leave types to pay out (e.g. Annual Leave, Long Service Leave) and Leave Loading if appropriate.

Enter the Termination Date (the same date as on the original termination pay run) and Initialise the Termination Pay Run.

Double-click on the employee to view the payment details.

Click on the red Termination Payout figure in the 'This' column and confirm that the appropriate leave types are included in the right hand panel for payout.

Adjust the tax if necessary and finalise the termination pay run as normal.

Provide the employee with a Pay Advice for the original termination pay and one for the additional termination pay.

I didn't pay Leave Loading on a Termination Pay

If, after paying out Annual Leave on a Termination Pay Run you determine that you were also meant to pay Leave Loading on that payout, you will need to use an Allowance to pay the loading.

Determine the outstanding amount of Leave Loading to be paid.

Check the dollar mount of Annual Leave that was paid out on the Termination Pay Advice.

Multiply this amount by 17.5% to derive the amount of Leave Loading that is outstanding on that payout.

Check whether you already have an Allowance type that would be suitable.

If not, create one.

From the menu, select System > Allowances.

Click on the Add icon to add one.

Enter an Allowance Name (e.g. Leave Loading Payout).

Select 'Other' from the ATO Allowance Type pick list.

Select Before Tax.

Do not tick the "Is Ordinary Time Earnings (OTE)" checkbox.

If the Termination was due to a Genuine Redundancy, tick Lump Sum A and tick Genuine Redundancy.

Otherwise tick Salary.

Select the appropriate GL Expense Account (e.g. Salaries & Wages)

Click on the Save icon.

Perform another Termination Pay to payout the Leave Loading

See instructions above on how to select a Terminated employee on another Termination Pay Run.

On the Termination Options window select:

• "Redundancy" if the termination was due to a genuine redundancy.
• "Standard" if the termination was not due to a genuine redundancy.

Do not tick any other checkboxes.

Enter the Termination Date (the same date as on the original termination pay run) and Initialise the Termination Pay Run).

Double-click on the employee to view the payment details.

Click on the Before Tax Allowance cell in the 'This' column.

In the right hand panel, click on the Add button.

On the Employee Allowance popup, select the appropriate Allowance from the pick list (e.g. Leave Loading Payout), enter the amount to be paid and tick 'Add Amount'.

Adjust the tax if necessary and finalise the termination pay run as normal.

Provide the employee with a Pay Advice for the original termination pay and one for the additional termination pay.