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AccountRight Plus and Premier, Australia only

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When an employee leaves your business, you'll need to process their final pay. This will include their regular pay (up to their last day of work) and their unused annual leave.

Depending on the employee's workplace agreement and their reason for leaving, there may also be other payments you’ll need to finalise, like:

  • unused long service leave
  • redundancy
  • an employment termination payment (ETP), like in lieu of notice. If you need to include an ETP in a final pay, you'll need to complete some additional steps. To find out if a payment is defined as an ETP, check the ATO website.

You'll also need to report the employee's termination to the ATO through your STP reporting.

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Rules, tax and other complexities

Final pays can get complicated so we recommend you speak to an accounting advisor about the specifics of your final pay.

To learn about tax on final pays, see this ATO information. For the rules, calculators and other final pay resources, check the Fair Work website.

Processing a final pay

We'll step you through how to pay an employee's final regular pay and any unused leave. If the final pay includes an ETP, there's a little more you'll need to do.

To make it really clear to the employee what their final pay contains, we recommend processing separate pays for each of their final pay components (regular pay, unused leave, and any ETP amounts).

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Payroll categories

Reinstating an employee

Changing a recorded pay

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