Marlin HR enables flexible handling of different termination periods.
Termination pay run processing depends on an employee's termination date.
Termination dates are the date on which the employment was officially terminated.
If the termination date date aligns with the end of a pay period:
- Include them on the normal pay run for that period, regardless of the hours they worked
- Absences may be entered as leave or unpaid leave, as appropriate
If the termination date was in the middle of a pay period:
- Do not include the employee on the normal pay run for that pay period
Note: This would set their Paid To date beyond their termination date, preventing you from entering the correct termination date on the termination pay run
In both cases, a seperate termination pay run should then be processed for the employee.
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
Dates Paid
The Date Paid entered on a termination pay run is the date you will actually pay the employee the amounts included on that termination pay run.
Multiple termination pay runs can be processed for a single employee, which may be required if:
- An amount was accidentally omitted from the original termination pay run
- There is an agreement that the termination payments are to be made over a period of time
In this case:
- The Date Paid entered on each pay run may be different and will reflect the actual dates on which the payments were made
- However, the termination date and termination reason on each subsequent pay run will be the same as the original, as required by the ATO
Full Pay Periods
If an employees termination date coincides with the end of a pay period:
- Include them on the normal pay run for that pay period
(including outstanding work hours, overtime and allowances as normal) - Then process a seperate termination pay run for them
(including any unused leave payouts and termination payments)
If there are no unused leave payouts or termination payments:
- The termination pay run will be for $0 but is still needed to report the year-to-date amounts to the ATO as Final, along with the termination date and termination reason
Employees with the same termination pay date can be included on a single termination pay run, as they’ll be part of the same bank file. These employees can have different termination dates, as specified in the Options window before initialising the termination pay run.
Partial Pay Periods
If the termination date is in the middle of a pay period:
- Do not include the employee on the normal pay run for that pay period
- Process a seperat eTermination Payrun
(including any outstanding work hours, overtime, allowances, along with any unused leave payouts and termination payments)
If there are no unused leave payouts or termination payments:
- The termination pay run will be for $0 but is still needed to report the year-to-date amounts to the ATO as Final, along with the termination date and termination reason
Including an employee who has only worked a partial final pay period on the normal pay run will set their "Paid To" date beyond the termination date, preventing correct termination pay processing.
If you accidentally include a terminated employee who only worked a partial period in a normal pay run:
- Enter Paid To date as the Termination Date
- Add a note in the Comments field (e.g. "Last day of work was XX/XX/20XX.")
Employees are entitled to accrue leave on any standard hours worked during a final, partial pay period, which will be automatically calculated as part of the termination pay run and added to the leave payout.