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https://help.myob.com/wiki/x/dAOy
ANSWER ID:22996
When an employee ceases their employment, you will need to prepare their final pay. Below is the three-step process of preparing the payment, overriding the tax and processing the 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.
- If required, click Tax Override to adjust the number of weeks these earnings are to be spread over, for example if the employee is normally paid weekly and this pay also includes their holidays, then the tax will be too high and will need to be adjusted accordingly.
Example
Ella is normally paid for 40 hours per week and her gross earnings for this is $400.00. Her final pay includes 3 weeks Annual Leave (3 x $400) and $500 accrued Holiday Pay, in other words (3 X $400) + $500 = $1700. So her final pay is $400 + $1700 = $2100.
- While still within the employee's Enter Pay Details window, click inside the Rate column of the TAX/PAYE line then click Tax Override. The Pay Frequency/Tax Override window is displayed.
- Change the This pay is for value based on the number of weeks the final pay covers, then click OK.
Example
Ella's normal gross pay is $400.00 for 1 week, but the final pay works out to $2100.00. This is 5 times her normal pay so it would be suggested to change This pay is for to 5 weeks.
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.
Note: 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.
FAQs
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.