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Process a pay for this employee and enter $0 in all the fields and record a $0 pay. When the $0 pay is reported via STP the YTD amount will be sent through as well.

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AccountRight Plus and Premier, Australia only

As part of your STP reporting requirements, when an employee finishes working for you, you need to let the ATO know:

the employee's end date, and
that you won't be paying the employee again this payroll year (known as 'finalising').

Checklist

Title	Before you begin

Process all final payments to the employee who's leaving. See Processing a final pay.

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title	1. Notify the ATO of the employee's end datetermination

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, reason, and any ETP components in their final pay.

Here's how:

Which steps do I follow?

How you notify the ATO of the termination depends on whether you're set up for STP Phase 1 or STP Phase 2. If you set up STP after mid-December 2021, you're likely on STP Phase 2.

The easiest way to check is to look in one of your wage categories:

Sign in to your company file and go to the Payroll command centre > Payroll Categories.
Click the zoom arrow Image Added to open a wage category.
Check how many ATO Reporting Category fields there are.
1. If there are two ATO Reporting Category fields (and a message about "STP Phase 2 is coming", you're on STP Phase 1 — which is fine!
2. If there's only one ATO Reporting Category field, your file is set up for STP Phase 2.

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To notify the ATO

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title	I'm set up for STP Phase 1

Go to the Payroll command centre and click Payroll Reporting.
Click Payroll Reporting Centre.
Click the Employment terminations tab.
Select the employee who's leaving, choose their last day of employment, then click Notify the ATO.
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Enter your name as the authorised declarer and click

When prompted to send your payroll information to the ATO, enter your details and click Send.

This declaration is processed in the same way other

Single Touch Payroll reports are. They must

STP reports, and it can take up to 72 hours to be accepted by the ATO

, which

. You can check the status of the report in the STP reporting centre.

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title	I'm set up for STP Phase 2

Go to the Payroll command centre and click Payroll Reporting.
Click Payroll Reporting Centre.
If prompted, sign in using your MYOB account details (email address and password).
Click the Employee terminations tab.
Choose the applicable Payroll year and click Add Termination.
Enter the termination details and click Notify the ATO.
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When prompted to send your payroll information to the ATO, enter your details and click Send.

This declaration is processed in the same way other STP reports, and it can take up to 72 hours to be accepted by the ATO. You can check the status of the report in the STP reporting centre.

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title	2. Finalise the employee

This step lets the ATO know that you won't be paying the employee again this payroll year. You can finalise the terminated employee now, or when you complete your STP finalisation at the end of the payroll year.

For all the details, see End of year finalisation with Single Touch Payroll reporting.

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<h2><i class="fa fa-comments"></i>  FAQs</h2><br>

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), 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:

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title	What if I've terminated an employee before setting up Single Touch Payroll reporting?

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title	1. Reinstate the employee

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.

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title	2. Enter a $0 pay

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title	3. Finalise the employee

Go to the Payroll command centre and click Payroll Reporting.
Click Payroll Reporting Centre.
Click the EOFY Finalisation tab.
(Optional) To enter RFBA, click the ellipsis Image Removed button and choose Enter RFBA. More information: Reportable fringe benefits (RFBA) with Single Touch Payroll reporting.
Select each employee you want to finalise, then click Set as Final.
Enter your name and click Send.

Each employee that has been finalised will have the Final indicator ticked.

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title	4. Terminate the employee

Now that you've reported through STP you can enter the termination details in the employee card. See Enter termination details for more information.

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title	How do I remove an ETP from the Payroll Reporting Centre?

How do I remove an ETP from the Payroll Reporting Centre?

Reverse If an ETP amount you paid an employee is wrong, you can reverse the pay in AccountRight and you’ll be prompted to submit the reversal to the ATO for STP reporting. This will automatically remove the incorrect payment.

If you need to undo an employee's termination, see Removing an employee termination.

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title	Related topics

Processing a final pay

Processing an employment termination payment (ETP)

Removing an employee termination

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Key

Which steps do I follow?

To notify the ATO

What if I've terminated an employee before setting up Single Touch Payroll reporting?

How do I remove an ETP from the Payroll Reporting Centre?

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