ANSWER ID:22996When an employee ceases their employment, you will need to prepare their final pay. A final pay is comprised of any worked ordinary hours worked for the pay period as well as any annual leave, holiday pay and alternative holiday entitlements. It can also include other items such as allowances, deductions, etc. | UI Expand |
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| title | 1. Prepare the final pay |
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| This task will add any outstanding leave due to the ordinary pay. - Go to the Prepare Pays command centre and click Enter Pays. The Enter Pays window is displayed.
- Double-click the employee for whom the final pay is to be prepared. The Enter Pay Details window is displayed.
- Enter the ORD (Ordinary Time) hours worked in the final pay period. This may differ from the employee's normal hours if the pay is for a longer period, so ensure this is adjusted accordingly.
- Click Final Pay. The Final Pay Details window is displayed.
- Enter the employee's Finish Date and Finish Reason then click OK. The employee's pay details will have been updated and the pay is now marked as a Final Pay.
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| Click the TAX (PAYE) pay code then click into the Rate column. The Tax Override button in the right-hand column will now be available. Click Tax Override. Enter the Extra Pay Amount, then choose the appropriate tax code. Use this table for guidance: For more information on extra pay amounts, check with your accounting advisor or the IRD. | Tax Code | Threshold (annual income including the final pay) |
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| SB | $14,000 or less | | S | $14,001 up to $48,000 | | SH | $48,001 up to $70,000 | | ST | $70,001 or more |
- Click OK.
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| title | 3. Process the final pay |
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| Process the final pay as you would any other pay. The employee's pay slip will show any outstanding leave as being paid out, or deducted if in arrears. | UI Text Box |
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| The employee is entitled to be paid for any Statutory Holidays that fall in the period that their Annual Leave would have covered. For more information on this visit the Department of Labour website. |
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<h2><i class="fa fa-comments"></i> FAQs</h2><br> |
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| title | What if my employee is receiving a redundancy/severance payment? |
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| If your employee is receiving a redundancy or severance payment these must be handled using a special paycode. Please see Redundancy payments for more information. |
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