AccountEdge Pro and Network Edition v18.5 and later, Australia only
When an employee has been terminated, you need to tell the ATO that you won't be sending any more payroll information for that employee.
Let's take you through it.
Process all final pays and ETP (if required), following steps 1 through 6 in Processing a final pay.
This is the same process whether you're using Single Touch Payroll reporting or not.
As part of your Single Touch Payroll reporting, you need to notify the ATO of the termination. This lets the ATO know the employee's termination date and any ETP components in their final pay.
- Go to the Payroll command centre and click Payroll Reporting.
- Click Create Update Event. The Create Update Event window appears.
- Choose the Payroll Year you're terminating the employee in.
- Select the terminated employee.
- Enter your name as the Authorised Sender and click Send to ATO.
End of year finalisation
You'll also need to send a final submission to the ATO to let them know you won't be paying the employee again this payroll year. You do this by selecting the Final Submission option. It's up to you whether you do this when you terminate the employee, or at the end of your payroll year when you finalise all employees.
For details on finalising an employee, see Single Touch Payroll reporting.
What if I've terminated an employee before setting up Single Touch Payroll reporting?
If the employee was terminated in the current payroll year and their final pay was an Employment Termination Payment (ETP) (what payments are classified as ETPs?), you won't be able to report this to the ATO through Single Touch Payroll. Instead, you'll need to provide them with a payment summary.
But if the final pay wasn't an ETP, e.g. their final pay only included unused leave, you'll need to:
- Go to the Card File command centre and click Cards List.
- Click the Employee tab.
- Click the zoom arrow to open the employee's card.
- On the Profile tab, ensure the employee's details are current and the Inactive Card option is deselected.
- Click the Payroll Details tab.
- Click the dropdown arrow next to the Termination Date (to display the calendar) then click Clear. Alternatively, you can highlight the date and press Delete on your keyboard.
- Click through each of the tabs in the employee's card and ensure their details are up to date (Wages, Entitlements, Deductions, etc.). For more details see Enter employee payroll information.
Go to the Payroll command centre and click Payroll Reporting. The Payroll Reporting window opens.
Click Create Update Event. The Create Update Event window opens.
Select Update Event from the drop down list in the Type field. A list of employees appears.
Click the Create Update Event button. The Create Update Event window appears.
Select from the list of employees to report updated payroll data to the ATO.
Enter the name of the Authorised Sender.
Click Send to ATO.
Click Close to close the window.
- Go to the Payroll command centre and click Payroll Reporting. The Payroll Reporting window opens.
- Click Create Update Event. The Create Update Event window opens.
- Choose the Payroll Year you're finalising.
- Select the employees to be finalised and enter the Authorised Sender.
- Select the Final Submission option and click Send to ATO.
- Click Close to close the window.