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AccountRight Plus and Premier, Australia only

When an employee is terminated and you've been reporting their payroll information to the ATO via Single Touch Payroll, you need to let the ATO know that you won't be sending any more payroll information for that employee.

Let's take you through it.

 

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title1. Process all final pays and ETP (if required)

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.

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title2. Notify the ATO

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.

Here's how:

  1. Go to the Payroll command centre and click Payroll Reporting.
  2. Click Payroll Reporting Centre.
  3. Click Employment terminations.
  4. Select the employee, choose their last day of employment, then click Notify the ATO.


  5. Enter your name as the authorised declarer and click Send.

This declaration is processed in the same way other Single Touch Payroll reports are. They must be accepted by the ATO, which can take up to 72 hours.

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title3. 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.

Need to undo a termination payment? See Deleting Removing an employment termination payment.

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<h2><i class="fa fa-comments"></i>&nbsp;&nbsp;FAQs</h2><br>
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titleWhat if I've terminated an employee before setting up 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), 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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title1. Reinstate the employee
  1. Go to the Card File command centre and click Cards List.
  2. Click the Employee tab.
  3. Click the zoom arrow to open the employee's card.
  4. On the Profile tab, ensure the employee's details are current and the Inactive Card option is deselected.
  5. Click the Payroll Details tab.
  6. 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.
  7. 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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title2. Enter a $0 pay
  1. 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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title3. Finalise the employee
  1. Go to the Payroll command centre and click Payroll Reporting.
  2. Click Payroll Reporting Centre.
  3. Click the EOFY Finalisation tab.
  4. (Optional) To enter RFBA, click the ellipsis button and choose Enter RFBA. More information: Reportable fringe benefits (RFBA) with Single Touch Payroll reporting.
  5. Select each employee you want to finalise, then click Set as Final.
  6. Enter your name and click Send.

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

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title4. 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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titleWhat if I have duplicated ETP amounts in the Payroll Reporting Centre?

What if I have duplicated ETP amounts in the Payroll Reporting Centre?

You can delete duplicated ETP amounts from the payroll reporting centre. For all the details, see Removing an employment termination payment.

 

 

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titleRelated topics

Deleting Removing an employment termination payment

Prepare payment summaries

Processing an employment termination payment (ETP)

About Single Touch Payroll reporting